MD_DA810 DA MD DA810 Cheese - Northeast MADISON, WI. May 14, 2008 (REPORT 20) NORTHEAST WHOLESALE CHEESE: Prices for wholesale cheese in the Northeast increased as Cheddar block and barrel weekly average prices at the Chicago Mercantile Exchange rose at the end of trading last week. The weekly average on blocks was $1.9680 and the weekly average on barrels was $1.9600. Cheddar blocks and barrels have been trading within about a 44 cent channel for the last 11 months, with the following high/low prices, barrels, $2.1320/$1.7313 and blocks, $2.1833/$1.7405. Orders into larger cheese facilities are steady to higher as some fast food restaurants have shifted suppliers for various cheese types. Cream cheese production is trending higher. Production of low fat Cheddar is near plant capacity at some locations. Demand for product from some smaller plants is reportedly lower as ordering and pricing are often inversely related. With cheese prices trading closer to the top of the price cycle, some buyers may be waiting for the next shift downward before reordering. Milk is readily available for cheese production. The latest Foreign Agricultural Service report shows January - March 2008 exports of all types of fresh cheese and curd (Schedule B code 0406100000)total 9.6 million pounds, a 9.4% decrease from the same period one year ago. Leading destinations for U.S. cheese, number of pounds received to date in 2008, and percentage changes from the previous year are: Mexico (5.9 million pounds, -11.0%); Indonesia (.7 million pounds, +20.9%); China (.6 million pounds, +96.6%) and Republic of Korea (.4 million pounds, - 28.5%). Countries that received U.S. cheese in January - March 2008 that did not receive any imports in the same time period in 2007 include: Bahrain (49,600 pounds); Cayman Islands (51,100 pounds); Egypt (37,300 pounds) and Malaysia (38,400 pounds). Cheddar cheese exported during January - March 2008 totals 15.0 million pounds, a 175.5% increase from one year ago and blue-veined cheese exports total 40,100 pounds, a 42.0% decrease from one year ago. WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS) Cheddar 10# Prints : 2.0625-2.5825 Cheddar Single Daisies : 2.0200-2.5050 Cheddar 40# Block : 2.1175-2.3925 Process 5# Loaf : 2.1625-2.4025 Process 5# Sliced : 2.1775-2.4875 Muenster : 2.1375-2.3350 Grade A Swiss Cuts 10 - 14# : 3.0075-3.3300 1100 CT janet.linder@usda.gov 608.250.3207