MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  February 08, 2012 (REPORT 6)                       

WEST CHEESE                                                      

Western cheese prices are mixed.  Barrels are showing some strength for last 
week's average while block prices are generally lower.  Production of cheese in 
the West is heavy as milk is readily available.  Plants are keeping a close eye 
on inventory levels as stocks are building.  Lower prices have increased export 
interest, especially those eligible for CWT assistance.  Cash trading of cheese 
at the CME Group was lower on Wednesday for both barrels and blocks.  Barrels 
closed Wednesday down $.0275 at $1.4750 and blocks closed down $.0050 at $1.4750.  
Sales of barrels are good so far this week as eighteen sales have been made 
through Wednesday.  Block trading was moderate with six loads trading so far this 
week.  CME Group monthly average price for January 2012 for barrels is $1.5358 
compared to January 2011 at $1.4876.  Blocks averaged $1.5546 for January 2012 
compared to $1.5140 for last year.  According to FAS, quota imports of cheese for 
January 2012 total 11.0 million pounds, up 6.1% from a year ago.  The imports 
stand at 3.7% of the annual quota.  Imports of High-Tier cheese (above quota and 
with a penalty) for the same period are estimated to total 2.3 million pounds, 
compared to 1.5 million pounds imported for January of 2011.  Imports of quota 
Swiss cheese for January 2012 total 3.0 million pounds, down 20.0% from last 
year.  The two main countries for the Swiss imports are Norway and Finland, and 
they account for 1.8 million pounds or 59.4% of the year's total import of Swiss.  
                                                                 
WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.6200-1.8775     
Cheddar 40# Block                            : 1.6225-1.9750     
Cheddar 10# Cuts                             : 1.8025-2.0225     
Monterey Jack 10#                            : 1.8125-1.9725     
Grade A Swiss Cuts 6 - 9#                    : 3.1800-3.6100     

U.S. Cheese Imports (USDA-FAS)
                  2012 Imports        % Change From   % of 
                  (Million Lb.)       1 Year Ago      Yearly Quota

Jan.       
High Tier           2.3               + 56.5           N.A.
Quota Imports      11.0               +  6.1           3.7

1500C Robert.Hunter@ams.usda.gov  608.278.4158