Asia’s growing appetite for pizza and cheeseburgers means the U.S. is exporting the most cheese ever, boosting commodity costs for companies including Kraft Foods Inc. (KFT) and Costco Wholesale Corp. (COST)

Wholesale cheddar-cheese prices have rallied 53 percent this year as the U.S. shipped more than twice as much to Asia in the first four months of 2011 as a year earlier, U.S. Dairy Export Council data show. South Korea, the region’s biggest buyer, almost tripled imports while China’s more than doubled.
The cheese boom pushed milk futures to a four-year high this week and is increasing costs for Kraft, the world’s second- largest food company, and Costco Wholesale Corp., the largest U.S. warehouse-club chain.
----------------U.S. home sales, construction probably rose
Home sales and construction in the U.S. probably rose in June from depressed levels as the industry struggled to gain traction in the face of foreclosures, falling prices and rising unemployment, economists said before reports this week.
Purchases of previously owned homes climbed 2.9 percent from May’s six-month low to a 4.95 million annual rate, according to the median projection of 55 economists surveyed by Bloomberg News before a National Association of Realtors’ report on July 20.
Declining home values and delays in processing foreclosures mean it may take years to clear the market of distressed properties, a sign sustained gains in sales and construction will be slow to develop.
-----------------UK economy to grow less than previously forecast on consumer, Greek risk
Ernst & Young LLP’s Item Club will cut its UK economic growth forecasts for the second time this year as weak consumer spending and Europe’s sovereign-debt crisis cloud the outlook for the recovery.
Gross domestic product will increase 1.4 percent in 2011, compared with an April projection of 1.8 percent, the London- based Item Club, which uses the same forecasting model as the UK Treasury, will say in a report to be published in London tomorrow. It will rise 2.2 percent in 2012, instead of 2.3 percent. The Item Club also reduced its forecasts in April.
The UK recovery is failing to gain momentum as inflation at more than double the Bank of England’s target squeezes consumers’ incomes and the government cuts spending to reduce the budget deficit.