Saturday Morning Cheese Price Report

MIDWEST CHEESE:                                                  

Some large cheese manufacturers continue to operate at full production 
levels, with sales commitments running months ahead of production.  An 
official of a fully scheduled multi-plant cheese manufacturer noted that 
more milk is available, some milk due to production increases and some due 
to lower Class I demand, but is not taken because cheese production is 
already maxed out.  He commented "we can't make any more cheese".  There are 
also some, but not many plant officials who say sales and production are 
down due to high prices.  Overall, the majority of manufacturers continue to 
have strong cheese sales and a number not already at full production have 
taken extra milk this week to increase output.  Some manufacturers have also 
moved barrels getting some age into the spot market to meet current cheese 
demand.  Fat and protein tests are mixed, up in some instances but down in 
others.  New cheese price highs were set early this week, and then backed 
off from as of Wednesday's close.  Blocks set a new high of $2.4325 on 
Monday but retreated to $2.4225 at Wednesday's CME close.  Barrels set a new 
high of $2.3775 Monday but retreated to $2.3300 by Wednesday's close.  Many 
cheese sellers are not available to contact through normal methods this week 
because they are in Las Vegas for an international pizza exposition, working 
to sell even more cheese.  NASS reports that total U.S. February 2014 
natural cheese stocks were 1.01 billion pounds, 94% of February 2013, and 
even with January 2014.  January East North Central region (Wisconsin, 
Illinois, Michigan, Indiana and Ohio) other cheese stocks were 93% of 
February last year, and 99% of January 2014.  Regional February 2014 
American cheese stocks were up over January more than national stocks, with 
regional stocks being 106% of January in contrast with national stocks being 
100%.  Regional February 2014 stocks were 82% of February 2013, while 
national stocks were 95%.  U.S. Swiss cheese stocks ending February this 
year, 26.8 million pounds, were 105% of January 2014 but 89% of February 
2013.  Wholesale process cheese prices adjusted up $.0300, Swiss was 
unchanged and the remaining listed varieties adjusted up $.0825.

DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                

Process American 5# Loaf                   : 2.4050-2.7650       
Brick And/Or Muenster 5#                   : 2.7875-3.2125       
Cheddar 40# Block                          : 2.4925-2.9100       
Monterey Jack 10#                          : 2.7625-2.9675       
Blue 5#                                    : 3.0550-4.0425       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 2.6325-3.5275       
Grade A Swiss Cuts 6 - 9#                  : 3.0675-3.1850