Midwest Cheese Market

MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  November 28, 2012 (REPORT 48)                      

MIDWEST CHEESE:                                                  
                                                                 
Cheese prices on the CME Group were mixed Wednesday with barrels 
declining $0.0200 to close at $1.7550 and blocks unchanged at $1.8250.  
Weekly average cheese prices on the CME Group moved lower for both 
barrels and blocks for the third consecutive week, lowering wholesale 
prices for all cheese varieties, except Swiss cuts, which were unchanged.  
Cheese production held generally steady to slightly higher over the 
holiday period.  Demand for cheese remains good for most varieties with 
good interest coming from pizza makers.  Pepper Jack cheese is also 
moving well, which is typical for this time of year.  Recent price 
declines on CME Group have prompted an increased movement of cheese into 
aging programs.  Barrel prices have taken the brunt of the price declines 
on the CME Group with some buyers holding off purchases to see if prices 
will go lower.  This situation has brought about an increase in barrel 
cheese inventories at some plants.  Cheese makers have commented on the 
improved quality of milk coming into plants with higher butterfat and 
protein levels, which increases their yields.  The latest NASS Cold 
Storage report shows stocks of natural cheese in cold storage as of 
October 31, 2012 totaled 954.0 million pounds, down 4% compared to one 
month ago and down 6% from one year ago.  

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.9200-2.6250       
Brick And/Or Muenster 5#                   : 2.2150-2.7750       
Cheddar 40# Block                          : 2.2150-3.2000       
Monterey Jack 10#                          : 2.1850-3.2000       
Blue 5#                                    : 2.4800-3.4650       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 2.0600-3.3000       
Grade A Swiss Cuts 6 - 9#                  : 3.1500-3.2675       

1:00 CST rick.whipp@ams.usda.gov

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