MD_DA851
DA
MD DA851 CHEESE HIGHLIGHTS 

MADISON, WI   May 17, 2013   (REPORT 20)

CHEESE HIGHLIGHTS:  Cheese prices were mixed again this week.  
The price differential between blocks and barrels returned to a 
more typical spread after weeks of widely divergent prices.  
Block prices had traded at as much as 23 cents higher than barrel 
prices.  Export demand for blocks had helped push prices higher 
while barrels faced lower demand.  A combination of lower export 
demand and anticipated increasing production for the near term, 
brought block prices back in line with the more typical 
difference between blocks and barrels.  Cheese plants are running 
busy schedules as milk supplies are available for Class III 
manufacturing.  Cheese inventories are above year ago levels, but 
are not considered burdensome.  Export interest continues to 
clear some volumes, but has slowed against higher prices.  Retail 
demand is moderate as consumers look for specials to make extra 
purchases.  Process cheese demand is reported to be lighter as 
consumers wait for the grilling season to arrive.  Spot trading 
at the CME Group this week was mixed, with barrels firming 
through the week and blocks showing weakness.  Sales at the 
exchange were active as buyers and sellers looked to take 
advantage of price movement.     

1200c robert.hunter@ams.usda.gov