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USDA Cheese Highlights                 05/21 12:37


MAY 21, 2004   MADISON, WI (REPORT 20)

CHEESE HIGHLIGHTS:  The cheese market is weak.  Buyers continue to 
limit purchases in anticipation of additional price declines.  
Sluggish overall cheese sales have caused extra milk volumes to be 
diverted to butter/powder and some into cheddar for possible offer on 
Chicago Mercantile Exchange cash cheese market.  Inventory is growing 
at most production plants.  Many packagers and/or processors continue 
to operate on less than full 5 day schedules.  Manufacturing plant 
schedules are heavy as milk intakes near the annual peak.  

1200C George Koerner 608.224.5083

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