Midwest Cheese Market

MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  January 02, 2013 (REPORT 1)                        

MIDWEST CHEESE:                                                  
                                                                 
Wednesday's trading on the CME Group saw barrels advance 2 cents to close 
at $1.7300, while blocks held steady and closed at $1.7600.  In the last 
4 trading sessions block prices have increased $0.0200, while barrels 
have advanced $0.0750, regaining the typical price spread between barrels 
and blocks of 3 cents.  The CME weekly average prices for barrels and 
blocks advanced, reversing a 3 week decline for barrels and a 7 week 
decline for blocks.  The increases raised Wisconsin wholesale cheese 
prices with Process American 5# Loaf increasing $0.0425, while all other 
cheeses with the exception of Swiss Cuts increasing $0.0100.  The Swiss 
Cut wholesale price was unchanged.  Cheese production continues at 
increased levels as holiday milk volumes have expanded cheese makers' 
milk supplies.  Inventories are expanding as cheese makers hope for 
increased promotions ahead of the NFL playoffs leading up to the Super 
Bowl to prompt an uptick in sales.  Export interest remains fairly good 
and was supported by the 30 day contract extension agreement, averting a 
Longshoremen's strike on the Eastern and Gulf coasts.  The avoidance of 
the "Milk Cliff" with an extension of current farm regulations has 
provided a level of relief for many in the dairy industry.  

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.8725-2.5775       
Brick And/Or Muenster 5#                   : 2.1275-2.6875       
Cheddar 40# Block                          : 2.1275-3.0000       
Monterey Jack 10#                          : 2.0975-3.0000       
Blue 5#                                    : 2.3925-3.3775       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.9725-3.1000       
Grade A Swiss Cuts 6 - 9#                  : 3.3800-3.4975       

1:00 CST rick.whipp@ams.usda.gov

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