MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  February 3, 2010 (REPORT 05)                      

WEST CHEESE 

Prices on 40 lb. Blocks at the CME Group on Wednesday were $.0050 lower 
at $1.4975.  Barrel prices were unchanged at $1.4725.  So far this week, 
Blocks are $.0175 lower as offers have lowered each day.  No sales were 
reported for the week.  Barrels decreased $.0325 on light sales of two 
loads.  Cheese production in the West continues at a brisk pace.  
Cooperatives and independent producers continue to supply cheese plants 
with additional supplies of milk.  Cheese yields are reported to be 
favorable at this time of the year.  Plants are running at near full 
schedules.    Manufacturers are keeping a close eye on inventory as 
buyers remain cautious concerning near term price levels.  Any excess 
supplies are being offered as spot sales or to the CME Group in Chicago.  
Some grocery chains are featuring sales of 2 pound packages as features.  
According to the NASS Dairy Products report, total cheese production in 
the U.S. in December reached 862 million pounds, down 0.1% or 1.1 
million pounds from last year.  December total cheese production in the 
Western region was 358 million pounds, down 0.3% from December 2008.  
The West produced 41.5% of all the cheese in the U.S. in December.  
Cumulative output for the U.S. for the year is 10.1 billion pounds, up 
1.7% from the same period in 2008.  This is an increase of 170.3 million 
pounds.  Swiss output for the U.S. in December is 28.5 million pounds, 
up 6.8% or 1.8 million pounds from last year.
                                                                  
WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.6325-1.8900     
Cheddar 40# Block                            : 1.6450-1.9975     
Cheddar 10# Cuts                             : 1.8250-2.0450     
Monterey Jack 10#                            : 1.8350-1.9950     
Grade A Swiss Cuts 6 - 9#                    : 2.8200-3.2500     
  
1500C Robert.Hunter@ams.usda.gov 608.250.3217