MD_DA830
DA
MD DA830 Cheese - Midwest
MADISON, WI. November 14, 2012 (REPORT 46)
MIDWEST CHEESE:
Wednesday was the first CME price increase for blocks in 13 trading sessions
and for barrels, in 8 trading sessions. Blocks increased +$.0525 to $1.9100
and barrels increased +$.0075 to $1.8350, widening the price spread from 3
cents to $.0750. Last week into early this week some manufacturers of
Parmesan cheese had noted a welcome positive impact on sales from recently
lower CME prices. Parmesan and other Italian cheese varieties which require
longer aging than some other cheeses, have experienced buyers holding back
from building aging inventory at recent high price levels. Even with
Wednesday's price increases, the weekly average change through Wednesday
remains negative, so trading through the balance of the week may better
determine whether recent increased order placement is impacted. Some
Midwest cheese manufacturers continue to report receiving new notices
"weekly" from some of their smaller dairy producers supplying milk, that the
producers are ceasing farming. The non-scientific "gut" conclusion from
cheese plant managers is that cows seem to be going more often to slaughter
than to other herds. In coming months, some manufacturers of both cheese
and butter plan to divert milk more toward cheddar production than butter.
They believe that cheddar will present a more profitable way to hold milk in
coming months. Cheese retail advertising volume reported in the National
Dairy Retail Report has more than recovered the ground lost four weeks ago.
Cheese ads this period are up 30.6% from two weeks ago, which was up only
slightly from four weeks ago when ad numbers declined 25.2%. There is a
greater emphasis on ads for 8 ounce blocks and shredded in the Midwest than
nationally. The largest number of cheese ads nationally, 39.4%, are for 8
ounce shredded cheese, up from both 39.2% the last period and 36.3% prior to
that. In the Midwest, ads for 8 ounce shredded are 52.0% of total regional
cheese ads. Nationally, the next highest variety at 28.3%, is 8 ounce
blocks, down from both 34.9% last period and 31.5% prior to that. In the
Midwest, 42.3% of cheese ads are for 8 ounce blocks. The remaining
varieties nationally are 2 pound block, 12.3%; 1 pound block, 10.8%; and 1
pound shredded, 9.2%. The national weighted average advertised price of 8
ounce shredded increased 6.4% to $2.33, reversing an 8.8% decline last
period; 8 ounce blocks increased 2.9% to $2.51 following a 2.1% increase
last period; 2 pound blocks increased 22.8% to $6.90 after declining 19.4%
last period; 1 pound blocks decreased 11.4% to $3.27 after increasing 3.1%
last period; and 1 pound shredded increased 28.7% to $4.22 after last
decreasing 8.9%. Cooperatives Working Together (CWT) has accepted 12
requests for export assistance to sell 2.090 million pounds (948 metric
tons) of Cheddar and Monterey Jack cheese to customers in Asia, the Middle
East, and North Africa. During 2012, CWT has assisted member cooperatives
in making export sales of Cheddar, Monterey Jack, and Gouda cheese totaling
108.4 million pounds.
WISCONSIN WHOLESALE SELLING PRICES: DELIVERED,
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)
Process American 5# Loaf : 2.1500-2.8550
Brick And/Or Muenster 5# : 2.4150-2.9750
Cheddar 40# Block : 2.4150-3.4000
Monterey Jack 10# : 2.3850-3.4000
Blue 5# : 2.6800-3.6650
Mozzarella 5 - 6# (Low Moisture, Part Skim): 2.2600-3.5000
Grade A Swiss Cuts 6 - 9# : 3.1500-3.2675
1:00 CDST eric.graf@ams.usda.gov
Midwest Cheese Market
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