MD_DA851
DA
MD DA851 CHEESE HIGHLIGHTS 

NOVEMBER 20, 2009   MADISON, WI (REPORT 46)

CHEESE HIGHLIGHTS:  CME Group cash cheese prices were mostly 
steady until Friday (11/20) when blocks closed at a 2009 annual 
high of $1.60 per pound and barrels increased to $1.50.  Current 
cheese supplies are adequate.  Natural packagers have been using 
overtime to fill orders though some time used is to build stocks 
ahead of next week's holiday shortened schedules.  Barrel 
offerings are heavy with process interest seasonal.  Bulk cheese 
needs will generally be lighter next week.  Strong milk interest 
from bottlers was reducing volumes entering cheese vats.  
However, after fluid demand slows early next week, more will 
return to manufacturing.  According to FAS, cheese and curd 
exports for the first nine months of 2009 total 170.6 million 
pounds, down 58.7 million pounds (6%) from the same period in 
2008.  Total quota imports of cheese for the first ten months of 
2009 total 163.9 million pounds, up 13% from 2008 and are 55% of 
the annual quota.  Imports of High-Tier cheese (above quota and 
with a penalty) for the ten months total 19.3 million pounds, 70% 
of the volume during the same period last year.  Thus far in 
2009, 1054 loads of blocks and 520 loads of barrels have been 
sold on the CME Group cash cheese market, the largest combined 
total for any year of trading at the CME Group.  


12:00C   George Koerner 608-250-3205