MD_DA830
DA
MD DA830 Cheese - Midwest
MADISON, WI. December 19, 2012 (REPORT 51)
MIDWEST CHEESE:
Strong export sales during the last week at high levels for a weekly cycle,
have helped some manufacturers "clean out" inventory of block cheddar. This
is a welcome counterpoint to domestic retail sales perceived as "sluggish",
attributed to buyer perceptions that prices are not yet low enough to
warrant "taking on appreciable inventories". With higher cheese inventory
building recently in some plants, resulting from increased cheese
manufacturing using milk being sold as much as $5.00 below Class III, the
sales boost of significant export sales is welcome. The week's export
transaction accounted for about 20% of all the manufacturer's exports for
2012. Heavy volumes of milk at prices under Class III continue to be
available to cheese manufacturers. By Wednesday this week, the block barrel
price spread, considered by many to "normally" be 3 to 4 cents, had narrowed
to $.0875, resulting from barrel prices increasing Monday and Wednesday.
The spread has not been under $.0875 since December 5. The uncertainty
about whether the Farm Bill will be extended before the end of the year has
some cheese plants at least planning for possible reversion to the 1949 Act
provisions, which could lead to government price support purchases of
cheese. Detailed regulations concerning cheese manufacturing standards,
inspection, packaging, storage, tender for sale, shipping etc., are being
reviewed and evaluated by some manufacturers wishing to be prepared for
whatever January 1 brings. In a completely separate matter, the Kansas City
Commodity Office (USDA-FSA) announced last Friday, a purchase award for
1,101,600 pounds of Natural American Cheese Barrels at prices ranging from
$1.9175 to $1.9675. This cheese will be distributed under USDA's Domestic
Food Distribution Program. Cooperatives Working Together (CWT) has accepted
requests for export assistance to sell 7.547 million pounds (3,423 metric
tons) of Cheddar and Monterey Jack cheese. The product will be delivered
December 2012 through June 2013. During 2012, CWT has assisted member
cooperatives in making export sales of Cheddar, Monterey Jack and Gouda
cheese totaling 123.2 million pounds.
WISCONSIN WHOLESALE SELLING PRICES: DELIVERED,
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)
Process American 5# Loaf : 1.8325-2.5375
Brick And/Or Muenster 5# : 2.1350-2.6950
Cheddar 40# Block : 2.1350-3.0075
Monterey Jack 10# : 2.1050-3.0075
Blue 5# : 2.4000-3.3850
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.9800-3.1075
Grade A Swiss Cuts 6 - 9# : 3.3800-3.4975
1:00 CST eric.graf@ams.usda.gov
Midwest Cheese Market
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