Tuesday Morning Fluid Milk and Cream Review

MIDWEST CHEESE:                                                  

Cheese production of multi-plant commercial cheese manufacturers is steady 
to higher this week.  Regional milk production increases leaves adequate 
milk for plant needs.  Orders early in the week are described as fairly 
strong, or up slightly for most operations.  Reports are noted for weakening 
demand for process cheese.  Most manufacturers are not sure what continued 
weaker prices might mean for orders in the near term.  Blocks followed the 
decline in closing prices Wednesday through Friday last week, by remaining 
unchanged through Wednesday this week.  Barrels were down Tuesday through 
Friday last week in addition to this Monday, staying unchanged Tuesday and 
Wednesday.  Little consensus was offered as to anticipated price movement 
the remainder of this week, which so far has not led to any noticeable 
change in buyer ordering overall.  More specialized cheese manufacturers 
have noted some recent buyer resistance at higher prices and now they are 
waiting to find out whether recent price weakness will positively affect 
demand.  The National Dairy Retail Report (DMN) found that Midwest ads for 8 
ounce shredded cheese have a weighted average advertised price of $2.13, 31 
cents lower than the national average, $2.44.  One year ago the national 
average was $2.14.  For 8 ounce blocks in the Midwest, the average price is 
$1.94, 31 cents lower than the national average, $2.22.  One year ago the 
national average was $2.25.  National ad numbers for all cheese categories 
this period increased by 6% from two weeks ago.  Wisconsin wholesale prices 
for 1,000 to 5,000 pound mixed lots of process cheese increased by $.03, 
while the remaining varieties remained unchanged.

DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                

Process American 5# Loaf                   : 2.4350-2.7950       
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