MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  June 12, 2013 (REPORT 24)                          

MIDWEST CHEESE:                                                  
                                                                 
Speculation among cheese manufacturers during recent weeks that many buyers 
were delaying purchases while awaiting evidence that markets were near 
bottom, seemed validated when 50 loads of blocks were sold during CME 
trading last week.  This surge of CME purchasing coupled with other factors, 
has led to a more widespread feeling of general cheese price bullishness 
expected to continue.  With Midwest weather finally showing signs of warming 
as the calendar moves toward the Summer Solstice, milk supplies are expected 
to seasonally decrease.  Hay prices also remain a concern. For example, a 
coop cheese plant manager commented about the number of its relatively 
smaller dairy farmers who recently stopped dairy farming often for reasons 
related to the cost and availability of feed.  Most converted to growing 
alfalfa and other feed.  This trend could affect milk supplies available for 
making cheese.  For these reasons among others, there is widespread 
concurrence with the perception that spot cheese market "looks comfortable 
and well supported" near recent price levels.  The National Dairy Retail 
Report found that this period, Midwest ads for 8 ounce shredded cheese (57% 
of total Midwest cheese ads), have a weighted average advertised price of 
$2.17, 15 cents lower than the national average, $2.32.  National ad numbers 
this period decreased by 13% from one year ago when the national price was 
$2.40.  For 8 ounce blocks in the Midwest (24% of total Midwest cheese ads), 
the average price is $2.09, 22 cents lower than the national average, $2.31.  
National ad numbers this period have declined by nearly 7% from one year ago 
when the national average price was $2.31.  Wholesale prices for Grade A 
Swiss cuts 6-9# increased $0.0750 following the release of the monthly Class 
III prices last week. 

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#                   : 2.1150-2.5625       
Cheddar 40# Block                          : 2.1150-2.9875       
Monterey Jack 10#                          : 2.0850-2.9875       
Blue 5#                                    : 2.3775-3.3650       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.9575-3.0875       
Grade A Swiss Cuts 6 - 9#                  : 2.9875-3.1050       

1:00 CST eric.graf@ams.usda.gov