Midwest Cheese Market

MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  December 26, 2012 (REPORT 52)                      

MIDWEST CHEESE:                                                  
                                                                 
Wednesday's trading on the CME Group saw prices unchanged with barrels 
closing at $1.6550 and blocks at $1.7400.  The CME weekly average prices 
for barrels and blocks declined and lowered Wisconsin wholesale cheese 
prices.  Process American 5# Loaf declined $0.0025, while all other 
cheeses with the exception of Swiss Cuts declined $0.0175.  The Swiss Cut 
wholesale price was unchanged.  Cheese production is at higher levels 
this week as more milk is being channeled to vats as manufacturers work 
through increased holiday milk volumes.  The increases in production will 
be adding to inventories.  Domestic demand is lackluster now that holiday 
sales have been completed, but there were some recent government 
purchases of barrel cheese for domestic food distribution programs.  
Export interest is picking up with increased calls from exporters.  
Export interest may be stymied if negotiations fail to produce an 
agreement this week with the Longshoremen's union, which could close port 
operations along the East and Gulf coasts.  It has not yet been 
determined how the potential lack of a Farm Bill will affect day to day 
operations at cheese plants, cheese prices or domestic demand.  The 
latest NASS Cold Storage report shows stocks of natural cheese in cold 
storage as of November 30, 2012 totaled 941.8 million pounds, down 1% 
compared to one month ago and down 4% from one year ago.  

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.8300-2.5350       
Brick And/Or Muenster 5#                   : 2.1175-2.6775       
Cheddar 40# Block                          : 2.1175-2.9900       
Monterey Jack 10#                          : 2.0875-2.9900       
Blue 5#                                    : 2.3825-3.3675       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.9625-3.0900       
Grade A Swiss Cuts 6 - 9#                  : 3.3800-3.4975       

1:00 CST rick.whipp@ams.usda.gov

1. Ag markets posted mixed showing on Tuesday
2. Plains storms cause minor harm to Oklahoma/Kansas wheat
3. Chocolate milk a top post-workout food
4. Another reason for adults to drink milk
5. Penn State Dairy Team schedules “Tools for Teams” webinars
6. Ag markets generally mixed again Tuesday morning

1. 4 rules for growing a business or industry
2. Seven jobs more dangerous than farming
3. D.C. Watch: Farm bill progressing
4. Chocolate milk a top post-workout food
5. April milk production up 0.3 percent
6. Class III futures close out quietly last week

1. Commentary: Slanting the statistics
2. World food supply depends on character, virtuous leadership
3. Buffet concerned about soil and starvation
4. Cold spring stunts upper Midwest hay crop
5. N.M. rancher charged with 43 counts of animal cruelty
6. 2014 Farm Bill: Are we near an agreement?