| THE      MONARCH CEMENT COMPANY(Exact      name of registrant as specified in its charter) |
|--------------------------------------------------------------------------------------------|
| KANSAS(state      or other jurisdiction of incorporation or organization)                  | 48-0340590(IRS      employer identification no.) |
|                                                                                       |   |
| P.O.      BOX 1000, HUMBOLDT, KANSAS(address      of principal executive offices)          | 66748-0900(zip      code) |

----

|  Large      accelerated filer       | ___                                      |                                                     |  Accelerated      filer     |   X                                              |
|------------------------------------------------------------------------|-----------------------------------------------|----------------------------------------------------------|--------------------------------------------|-----------------------------------------------------------------|
|  Non-accelerated      filer                   | ___        |  (Do      not check if a smaller reporting company) |  Smaller      reporting company  | ___           |

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| THE      MONARCH CEMENT COMPANY AND SUBSIDIARIES      |   |
|------------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED BALANCE SHEETS            |   |
| March      31, 2010 and December 31, 2009   |

|                                                                                                                   |                           |        |        |        |   |         |        |
|------------------------------------------------------------------------------------------------------------------------|--------------------------------|-------------|-------------|-------------|--------|--------------|-------------|
| ASSETS                                                                                                                 |                           |        | 2010        |        |   | 2 0      0 9 |        |
| CURRENT      ASSETS:                                                                                                   |                           | (Unaudited) |        |        |        |         |
|    Cash      and cash equivalents                                                                       |                           | $           | 1,514,655   |        |   | $            | 2,149,397   |   |
|    Receivables,      less allowances of $945,500 in 2010 and                                            |                           |        |        |        |   |         |        |   |
|       $911,000      in 2009 for doubtful accounts                                        |                           |        | 13,465,719  |        |   |         | 12,558,856  |   |
|    Inventories,      priced at cost which is not in excess of market-                                   |                           |        |        |        |   |         |        |   |
|          Finished      cement                                             |                           | $           | 6,339,901   |        |   | $            | 5,345,468   |   |
|          Work      in process                                             |                           |        | 2,258,329   |        |   |         | 2,050,200   |   |
|          Building      products                                           |                           |        | 5,349,231   |        |   |         | 5,225,431   |   |
|          Fuel,      gypsum, paper sacks and other                         |                           |        | 7,362,685   |        |   |         | 7,625,573   |   |
|          Operating      and maintenance supplies                          |                           |        | 11,089,000  |        |   |         | 11,538,788  |   |
|                                                                                                                   | Total      inventories         |        | $           | 32,399,146  |   |         | $           | 31,785,460 |   |
|         Refundable federal and state income taxes                                                            |                           |        | 1,858,696   |        |   |         | 310,795     |   |
|    Deferred      income taxes                                                                           |                           |        | 775,000     |        |   |         | 775,000     |   |
|    Prepaid      expenses                                                                                |                           |        | 689,626     |        |   |         | 324,844     |   |
|                                                                                                                   | Total      current assets      |        | $           | 50,702,842  |   |         | $           | 47,904,352 |   |
| PROPERTY,      PLANT AND EQUIPMENT, at cost, less                                                                      |                           |        |        |        |   |         |        |   |
|    accumulated      depreciation and depletion of $165,355,822                                          |                           |        |        |        |   |         |        |   |
|    in      2010 and $162,880,507 in 2009                                                                |                           |        | 89,539,609  |        |   |         | 90,817,394  |   |
| DEFERRED      INCOME TAXES                                                                                             |                           |        | 18,841,778  |        |   |         | 19,093,778  |   |
| INVESTMENTS                                                                                                            |                           |        | 18,965,280  |        |   |         | 18,419,208  |   |
| OTHER      ASSETS                                                                                                      |                           |        | 639,799     |        |   |         | 762,945     |   |
|                                                                                                                   |                           |        | $           | 178,689,308 |   |         | $           | 176,997,677 |   |
|                                                                                                                   |                           |        |        |        |   |         |        |   |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY                                                                              |                           |        |        |        |   |         |        |   |
| CURRENT      LIABILITIES:                                                                                              |                           |        |        |        |   |         |        |   |
|    Accounts      payable                                                                                |                           | $           | 5,553,854   |        |   | $            | 5,083,300   |   |
|    Line      of credit payable                                                                          |                           |        | 7,098,411   |        |   |         | 511,944     |   |
|    Current      portion of advancing term loan                                                          |                           |        | 2,754,691   |        |   |         | 2,732,490   |   |
|    Accrued      liabilities                                                                             |                           |        | 8,891,398   |        |   |         | 10,900,596  |   |
|                                                                                                                   | Total      current liabilities |        | $           | 24,298,354  |   |         | $           | 19,228,330 |   |
| LONG-TERM      DEBT                                                                                                    |                           |        | 11,373,009  |        |   |         | 12,096,835  |   |
| ACCRUED      POSTRETIREMENT BENEFITS                                                                                   |                           |        | 30,671,971  |        |   |         | 30,206,610  |   |
| ACCRUED      PENSION EXPENSE                                                                                           |                           |        | 12,746,436  |        |   |         | 12,250,038  |   |
| STOCKHOLDERS'      EQUITY:                                                                                             |                           |        |        |        |   |         |        |   |
|       Capital      stock, par value $2.50 per share, one vote per share -                |                           |        |        |        |   |         |        |   |
|          Authorized      10,000,000 shares, Issued 2,533,213 shares       |                           |        |        |        |   |         |        |   |
|          at      03/31/2010 and 2,532,463 shares at 12/31/2009            |                           | $           | 6,333,033   |        |   | $            | 6,331,158   |   |
|       Class      B capital stock, par value $2.50 per share, supervoting                 |                           |        |        |        |   |         |        |   |
|          rights      of ten votes per share, restricted transferability,  |                           |        |        |        |   |         |        |   |
|          convertible      at all times into Capital Stock on a share-for- |                           |        |        |        |   |         |        |   |
|               share basis - Authorized 10,000,000 shares, Issued    1,490,985  |                           |        |        |        |   |
|          shares      at 03/31/2010 and 1,491,735 shares at 12/31/2009     |                           |        | 3,727,462   |        |   |         | 3,729,337   |   |
|       Retained      earnings                                                             |                           |        | 101,292,386 |        |   |         | 105,989,712 |   |
|       Accumulated      other comprehensive loss                                          |                           |        | (11,753,343 | )           |   |         | (12,834,343 | ) |
|                                                                                                                   | Total      stockholders'equity |        | $           | 99,599,538  |   |         | $           | 103,215,864 |   |
|                                                                                                                   |                           |        | $           | 178,689,308 |   |         | $           | 176,997,677 |   |
|                                                                                                                   |                           |        |        |        |   |         |        |   |   |
| See      accompanying Notes to the Condensed Consolidated Financial      Statements                                    |                           |        |        |        |   |         |        |   |

----

| THE      MONARCH CEMENT COMPANY AND SUBSIDIARIES                                     |   |
|-------------------------------------------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED STATEMENTS OF LOSS AND RETAINED EARNINGS                 |   |
| For      the Three Months Ended March 31, 2010 and 2009      (Unaudited)   |

|                                                                                         |   |   |                                              |   |   |   |
|----------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------|--------|--------|--------|
|                                                                                         |   | 2010   |                                              |   | 2009   |   |
| NET      SALES                                                                               |   | $      | 18,194,726                                        |   |   | $      | 25,330,736 |   |
| COST      OF SALES                                                                           |   |   | 20,658,998                                        |   |   |   | 24,858,824 |   |
|        Gross      profit (loss) from operations           |   | $      | (2,464,272                                        | )      |   | $      | 471,912 |   |
| SELLING,      GENERAL AND                                                                    |   |   |                                              |   |   |   |   |   |
|    ADMINISTRATIVE      EXPENSES                                               |   |   | 3,887,518                                         |   |   |   | 4,121,633 |   |
|        Loss      from operations                          |   | $      | (6,351,790                                        | )      |   | $      | (3,649,721 | ) |
| OTHER      INCOME (EXPENSE):                                                                 |   |   |                                              |   |   |   |   |   |
|   Interest      income                                                             |   | $      | 50,886                                            |   |   | $      | 34,223 |   |
|   Interest      expense                                                            |   |   | (122,123                                          | )      |   |   | (147,694 | ) |
|   Gains      on equity investments                                                 |   |   | 4,172                                             |   |   |   | 77,535 |   |
|   Dividend      Income                                                             |   |   | 74,114                                            |   |   |   | 34,879 |   |
|   Other,      net                                                                  |   |   | 772,415                                           |   |   |   | (53,713 | ) |
|                                                                                         |   | $      | 779,464                                           |   |   | $      | (54,770 | ) |
|                                                                                         |   |   |                                              |   |   |   |   |   |
|          Loss      before taxes on income       |   | $      | (5,572,326                                        | )      |   | $      | (3,704,491 | ) |
| PROVISION      FOR INCOME TAXES                                                              |   |   | (875,000                                          | )      |   |   | (1,040,000 | ) |
|                                                                                         |   |   |                                              |   |   |   |   |   |
| NET      LOSS                                                                                |   | $      | (4,697,326                                        | )      |   | $      | (2,664,491 | ) |
|                                                                                         |   |   |                                              |   |   |   |   |   |
| Less:      Net loss attributable to Noncontrolling interests                                 |   |   | -         |   |   |   | (14,364 | ) |
|                                                                                         |   |   |                                              |   |   |   |   |   |
| NET      LOSS ATTRIBUTABLE TO THE COMPANY                                                    |   | $      | (4,697,326                                        | )      |   | $      | (2,650,127 | ) |
|                                                                                         |   |   |                                              |   |   |   |   |   |
| RETAINED      EARNINGS, beginning of period                                                  |   |   | 105,989,712                                       |   |   |   | 104,958,556 |   |
| RETAINED      EARNINGS, end of period                                                        |   | $      | 101,292,386                                       |   |   | $      | 102,308,429 |   |
| Basic      loss per share                                                                    |   | $      | (1.17                                             | )      |   | $      | (0.66 | ) |
|                                                                                         |   |   |                                              |   |   |   |   |   |
| CONDENSED      CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS                                 |   |   |                                              |   |   |
| For      the Three Months Ended March 31, 2010 and 2009 (Unaudited)                |
|                                                                                         |   |   |                                              |   |   |   |   |   |
|                                                                                         |   |   | 2010                                              |   |   |   | 2009 |   |
| NET      LOSS                                                                                |   | $      | (4,697,326                                        | )      |   | $      | (2,664,491 | ) |
| UNREALIZED      APPRECIATION (DEPRECIATION)                                                  |   |   |                                              |   |   |   |   |   |
|      ON      AVAILABLE FOR SALE SECURITIES                          |   |   |                                              |   |   |   |   |   |
|      (Net      of deferred tax expense (benefit) of $264,000        |   |   |                                              |   |   |   |   |   |
|      and      $(396,000) for 2010 and 2009, respectively)           |   |   | 400,172                                           |   |   |   | (596,465 | ) |
|                                                                                         |   |   |                                              |   |   |   |   |   |
| LESS:  RECLASSIFICATION      ADJUSTMENT FOR                                        |   |   |                                              |   |   |   |   |   |
|      REALIZED      GAINS (LOSSES) INCLUDED IN                       |   |   |                                              |   |   |   |   |   |
|      NET      INCOME (net of deferred tax (benefit) expense         |   |   |                                              |   |   |   |   |   |
|      of      $-0- and $32,000 for 2010 and 2009, respectively)      |   |   | 4,172                                             |   |   |   | 45,535 |   |
|                                                                                         |   |   |                                              |   |   |   |   |   |
| POSTRETIREMENT      LIABILITY (Net of deferred tax (benefit)                                 |   |   |                                              |   |   |   |   |   |
|      expense of $-0- and $-0- for 2010 and      2009, respectively) |   |   | 685,000                                           |   |   |   | -         |   |
| COMPREHENSIVE      LOSS                                                                      |   | $      | (3,616,326                                        | )      |   | $      | (3,306,491 | ) |
| See      accompanying Notes to the Condensed Consolidated Financial      Statements          |   |   |                                              |   |   |   |   |   |

----

| THE      MONARCH CEMENT COMPANY AND SUBSIDIARIES                                          |   |   |   |   |
|-------------------------------------------------------------------------------------------|--------|--------|--------|--------|
| CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS                                      |   |   |   |   |
| For      the Three Months Ended March 31, 2010 and 2009      (Unaudited)   |

|                                                                                                      |   |    |                                  |    |   |   |
|-----------------------------------------------------------------------------------------------------------|--------|---------|---------------------------------------|---------|--------|--------|
|                                                                                                      |   | 2010    |                                  |    | 2009   |   |
| OPERATING      ACTIVITIES:                                                                                |   |    |                                  |    |   |   |
|   Net      loss                                                                                 |   | $       | (4,697,326                            | )       |   | $      | (2,664,491 | ) |
|   Adjustments      to reconcile net loss to                                                     |   |    |                                  |    |   |   |   |   |
|     net      cash provided by operating activities:                                   |   |    |                                  |    |   |   |   |   |
|       Depreciation,      depletion and amortization                         |   |    | 2,893,295                             |    |   |   | 2,977,641 |   |
|       Deferred      income taxes                                            |   |    | (12,000                               | )  |   |   | (13,000 | ) |
|       Gain      on disposal of assets                                       |   |    | (34,523                               | )       |   |   | (40 | ) |
|       Realized      gain on sale of equity investments                      |   |    | (4,172                                | )       |   |   | (77,535 | ) |
|       Gain      on disposal of other assets                                 |   |    | (700,000                              | )       |   |   | -        |   |
|            Postretirement benefits and pension expense                           |   |    | 1,646,759                             |    |   |   |  936,335 |   |
|       Change      in assets and liabilities:                                |   |    |                                  |    |   |   |   |   |
|           Receivables,      net                         |   |    | (906,864                              | )       |   |   | (681,243 | ) |
|           Inventories                                   |   |    | (613,687                              | )       |   |   | (2,975,925 | ) |
|           Refundable      income taxes                  |   |    | (1,547,901                            | )       |   |   | (983,669 | ) |
|           Prepaid      expenses                         |   |    | (364,782                              | )       |   |   | (483,598 | ) |
|           Other      assets                             |   |    | 750                                   |    |   |   | 5,687 |   |
|           Accounts      payable and accrued liabilities |   |    | 970,855                               |    |   |   | 1,087,773 |   |
|       Net      cash used for operating activities                           |   | $       | (3,369,596                            | )       |   | $      | (2,872,065 | ) |
|                                                                                                      |   |    |                                  |    |   |   |   |   |
| INVESTING      ACTIVITIES:                                                                                |   |    |                                  |    |   |   |   |   |
|   Acquisition      of property, plant and equipment                                             |   | $       | (2,164,332                            | )       |   | $      | (2,278,623 | ) |
|   Proceeds      from disposals of property, plant and equipment                                 |   |    | 47,375                                |    |   |   | 200 |   |
|   Proceeds      from disposals of other assets                                                  |   |    | 700,000                               |    |   |   | -        |   |
|   Payment      for purchases of equity investments                                              |   |    | (47,800                               | )       |   |   | (2,493,439 | ) |
|   Proceeds      from disposals of equity investments                                            |   |    | 165,900                               |    |   |   | 608,835 |   |
|       Net      cash used for investing activities                           |   | $       | (1,298,857                            | )       |   | $      | (4,163,027 | ) |
|                                                                                                      |   |    |                                  |    |   |   |   |   |
| FINANCING      ACTIVITIES:                                                                                |   |    |                                  |    |   |   |   |   |
|   Increase      in line of credit, net                                                          |   | $       | 6,586,466                             |    |   | $      | 8,483,887 |   |
|   Payments      on bank loans                                                                   |   |    | (676,008                              | )       |   |   | (654,879 | ) |
|   Payments      on other long-term debt                                                         |   |    | (25,616                               | )       |   |   | (84,316 | ) |
|   Cash      dividends paid                                                                      |   |    | (1,851,131                            | )       |   |   | (1,851,131 | ) |
|       Net      cash provided by financing activities                        |   | $       | 4,033,711                             |    |   | $      | 5,893,561 |   |
|                                                                                                      |   |    |                                  |    |   |   |   |   |
| Net      decrease in cash and cash equivalents                                                            |   | $       | (634,742                              | )       |   | $      | (1,141,531 | ) |
| Cash      and Cash Equivalents, beginning of year                                                         |   |    | 2,149,397                             |    |   |   | 3,111,509 |   |
| Cash      and Cash Equivalents, end of period                                                             |   | $       | 1,514,655                             |    |   | $      | 1,969,978 |   |
|                                                                                                      |   |    |                                  |    |   |   |   |   |
| Interest      paid, net of amount capitalized                                                             |   | $       | 119,826                               |    |   | $      | 143,227 |   |
| Income      taxes paid, net of refunds                                                                    |   | $  | -       |    |   | $      | (45,204 | ) |
| Capital      equipment additions included in accounts payable                                             |   | $       | 90,111                                |    |   | $      | 951,002 |   |
|                                                                                                      |   |    |                                  |    |   |   |   |   |
| See      accompanying Notes to the Condensed Consolidated Financial      Statements                       |   |    |                                  |    |   |   |   |   |

----

| THE      MONARCH CEMENT COMPANY AND SUBSIDIARIES                                |
|---------------------------------------------------------------------------------|
| NOTES      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS              |
| March 31,      2010 and 2009 (Unaudited), and December 31, 2009  |

| 1. | For      a summary of accounting policies, the reader should refer to Note 1      of the consolidated financial statements included in our Company's most      recent annual report on Form 10-K. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Certain      reclassifications have been made to the 2009 financial statements to      conform to the current year presentation. These reclassifications had no      effect on net earnings. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Our      Ready-Mixed Concrete Business includes precast concrete construction which      involve long-term and short-term contracts. Long-term contracts relate to      specific projects with terms in excess of one year from the contract date.      Short-term contracts for specific projects are generally of three to six      months in duration. The majority of the long-term contracts will allow      only scheduled billings and contain retainage provisions under which 5 to      10% of the contract invoicing may be withheld by the customer pending      project completion. As of March 31, 2010, the amount of billed retainage      which is included in accounts receivable was approximately $640,000, all      of which is expected to be collected within one year. The amount of billed      retainage which was included in accounts receivable at December 31, 2009      was approximately $360,000. We      recognize revenues under the percentage of completion method of accounting      using cost-to-cost measures. Revenues from contracts using the      cost-to-cost measures of completion are recognized based on the ratio of      contract costs incurred to date to total estimated contract      costs.  The amount of unbilled revenue in accounts receivable      was approximately $370,000 and $780,000 at March 31, 2010 and December 31,      2009, respectively. Unbilled revenue contained approximately $120,000 and      $525,000 of not-currently-billable retainage at March 31, 2010 and      December 31, 2009, respectively, which is expected to be collected within      one year. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | As      of March 31, 2010, the amount of accounts payable related to      property, plant and equipment was $90,111 compared to December 31, 2009      which was $748,479. Depreciation,      depletion and amortization related to manufacturing operations are      recorded in Cost of Sales, those related to general operations      are recorded in Selling, General and Administrative Expenses, and those      related to non-operational activities are in Other, net on the      Condensed Consolidated Statements of Loss and Retained    Earnings. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | For      the three months ended March 31, 2010, we incurred a      temporary LIFO liquidation gain due to reductions in finished cement and      work in process inventory of $.2 million which we expect to be restored by      the end of the year. The temporary LIFO liquidation gain has been deferred      as a component of accrued liabilities. We incurred a temporary LIFO      liquidation gain of $.3 million due to reductions in finished cement      and work in process inventory during the three months ended March 31,      2009. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Our      Company groups its operations into two lines of business - Cement Business      and Ready-Mixed Concrete Business. The "Cement  Business" refers to      our manufacture and sale of cement and "Ready-Mixed Concrete Business"      refers to our ready-mixed concrete, concrete products, precast concrete      construction, and sundry building materials business. Corporate      assets for 2010 include cash and cash      equivalents, refundable income taxes, deferred income taxes,      investments and other assets. Corporate assets for 2009 include cash and cash      equivalents, short-term investments, refundable income taxes,      deferred income taxes, investments and other assets.      Following is information for each line for the periods      indicated: |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                            |   |                |       |   | Ready-Mixed      |    |                                  | Adjustments     |   |   |                                        |   |
|-------------------------------------------------|--------|----------------|------------|--------|------------------|---------|---------------------------------------|-----------------|--------|--------|---------------------------------------------|--------|
|                                            |   | CementBusiness |       |   | ConcreteBusiness |    |                                  | andEliminations |   |   | Consolidated                                |   |
| For      the Three Months Ended 03/31/10        |   |           |       |   |             |    |                                  |            |   |   |                                        |   |
| Sales      to unaffiliated customers            |   | $              | 6,945,883  |   |             | $       | 11,248,843                            |            |   | $      | -             |   |   | $ | 18,194,726 |   |
| Intersegment      sales                         |   |           | 2,351,659  |   |             |    | -       |            |   |   | (2,351,659                                  | )      |   |   | -             |   |
|    Total      net sales          |   | $              | 9,297,542  |   |             | $       | 11,248,843                            |            |   | $      | (2,351,659                                  | )      |   | $ | 18,194,726 |   |
| Loss from      operations                  |   | $              | (3,260,410 | )      |             | $       | (3,091,380                            | )               |   |   |                                        |   |   | $ | (6,351,790 | ) |
| Other      income, net                          |   |           |       |   |             |    |                                  |            |   |   |                                        |   |   |   | 779,464 |   |
|    Loss      before income taxes |   |           |       |   |             |    |                                  |            |   |   |                                        |   |   | $ | (5,572,326 | ) |
| Capital      Expenditures                  |   | $         | 465,318    |   |             | $  | 1,040,647                             |            |   |   |                                        |   |   | $  |  1,505,965 |   |

|                                       |   |                 |       |    | Ready-Mixed      |    |                                  | Adjustments     |   |    |                                        |    |
|--------------------------------------------|--------|----------------------|------------|---------|------------------|---------|---------------------------------------|-----------------|--------|---------|---------------------------------------------|---------|
|                                       |   | CementBusiness  |       |    | ConcreteBusiness |    |                                  | andEliminations |   |    | Consolidated                                |    |
| For      the Three Months Ended 03/31/09   |   |                 |       |    |             |    |                                  |            |   |    |                                        |    |   |   |   |   |
| Sales      to unaffiliated customers       |   | $                    | 9,942,542  |    |             | $  | 15,388,194                            |            |   | $  | -             |    |   | $  | 25,330,736 |   |
| Intersegment      sales                    |   |                 | 2,403,117  |    |             |    | -       |            |   |    | (2,403,117                                  | )  |   |   | -        |   |
|    Total      net sales     |   | $               | 12,345,659 |    |             | $  | 15,388,194                            |            |   | $  | (2,403,117                                  | )  |   | $  | 25,330,736 |   |
| Loss from      operations             |   | $               | (2,094,957 | )  |             | $  | (1,554,764                            | )          |   |    |                                        |    |   | $  | (3,649,721 | )  |
| Other      loss, net                       |   |                 |       |    |             |    |                                  |            |   |    |                                        |    |   |   | (54,770 | )  |
|         Loss before income taxes |   |                 |       |    |             |    |                                  |            |   |    |                                        |    |   | $  | (3,704,491 | )  |
| Capital      Expenditures                  |   | $               | 2,087,052  |    |             | $  | 920,659                               |            |   |    |                                        |    |   | $  | 3,007,771 |   |

| Balance      as of 3/31/10 |   |   |   |       |   |   |   |       |   |   |   |   |   |
|----------------------------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|--------|--------|
| Identifiable      Assets   |   |   | $      | 95,881,164 |   |   | $      | 40,212,936 |   |   |   |        |   |   | $ | 136,094,100 |   |
| Corporate      Assets      |   |   |   |       |   |   |   |       |   |   |   |   |   |   |   | 42,595,208 |   |
|                       |   |   |   |       |   |   |   |       |   |   |   |   |   |   | $ | 178,689,308 |   |

| Balance      as of 3/31/09 |   |   |   |       |   |   |   |       |   |   |   |   |   |
|----------------------------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|--------|--------|
| Identifiable      Assets   |   |   | $      | 98,054,524 |   |   | $      | 41,562,652 |   |   |   |   |   |   | $ | 139,617,176 |   |
| Corporate      Assets      |   |   |   |       |   |   |   |       |   |   |   |   |   |   |   | 40,487,739 |   |
|                       |   |   |   |       |   |   |   |       |   |   |   |   |   |   | $ | 180,104,915 |   |

| 7.             | During 2008, the      Company adopted the Financial Accounting Standards Board's (FASB) new      accounting standards on fair value measurements and disclosures for all      financial assets and liabilities. The new accounting principles defined      fair      value, established a framework for measuring fair value under      generally accepted accounting principles and enhanced disclosures about      fair value measurements. During the first quarter of 2009,      the Company adopted the new accounting standards on fair value      measurements and disclosures for all non-financial assets and      non-financial liabilities not recognized or disclosed at least annually at      fair value. The      Company defines fair value as the exchange price that would be      received to sell an asset or paid to transfer a liability in the principal      or most advantageous market for the asset or liability in an orderly      transaction between market participants at the measurement date. The      Company measures fair value using the following fair value hierarchy      which is based on three levels of inputs intended to      maximize the use of observable inputs and minimize the use of unobservable      inputs: Level      1 - quoted prices in active markets for identical assets or      liabilities. Level      2 - observable inputs other than Level 1 prices, such as quoted      prices for similar assets or liabilities; quoted prices in active markets      that are not active; or other inputs that are observable or can be      corroborated by observable market data for substantially the full term of      the assets or      liabilities.Level      3 - unobservable inputs that are supported by little or no market      activity and that are significant to the fair value of the assets or      liabilities. Cash      and cash equivalents, short-term investments, receivables, accounts      payable and long-term debt have carrying values that approximate fair      values. Equity      securities for which the Company has no immediate plan to sell but that      may be sold in the future are classified as available for      sale.  If the fair value of the equity security is readily      determinable, it is carried at fair value and unrealized gains and losses      are recorded, net of related income tax effects, in stockholders' equity.      Realized gains and losses, based on the specifically identified cost of      the security, are included in net income. The Company's valuation      techniques used to measure the fair value of its marketable equity      securities were derived from quoted prices in active markets for identical      assets. Equity securities whose fair value is not readily determinable are      carried at cost unless the Company is aware of significant adverse effects      which have impaired the investments. Investments that      are recorded at cost are evaluated quarterly for events that may      adversely impact their fair    value. |
|----------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                    |   |       |            |   | Fair      Value at Reporting Date Using: |    |
|---------------------------------------------------------------------------------------------------------|--------|------------|-----------------|--------|-----------------------------------------------|---------|
|                              |   |       |            |   | Quoted      Prices                            |    |   |   |   |   |   |   |
|                                                                                                    |   |       |            |   | in      Active                                |    |   | Significant |   |   |   |   |
|                                                                                                    |   |       |            |   | Markets      for                              |    |   | Other |   |   | Significant |   |
|                                                                                                    |   |       |            |   | Identical                                |    |   |  Observable |   |   |  Unobservable |   |
|                                                                                                    |   |            |            |   |  Assets                                  |    |   | Inputs |   |   | Input |   |
| Assets:                                                                                            |   | 03/31/2010 |            |   | (Level      1)                                |    |   | (Level      2) |   |   | (Level      3) |   |
|    Available-for-sale equity      securities                                        |   |       |            |   |                                          |    |   |   |   |   |   |   |
|            Cement industry                                                     |   |  $    | 7,892,142       |   |                                          | $  | 7,892,142 |   |   | $ |  -           |   |   | $ |  -           |   |
|            General building materials industry                                 |   |       |  3,670,076 |   |                                          |    | 3,670,076 |   |   |   |  -           |   |   |   |  -           |   |
|            Oil and gas refining and marketing industry                         |   |       | 4,349,625       |   |                                          |    | 4,349,625 |   |   |   |  -           |   |   |   |  -           |   |
|            Residential construction industry                         |   |       | 981,337         |   |                                          |    | 981,337 |   |   |   |  -           |   |   |   |  -           |   |
| Total      assets measured at fair value                                                                |   | $          | 16,893,180      |   |                                          | $       | 16,893,180 |   |   | $ |  -           |   |   | $ |  -           |   |
|                                                                                                    |   |       |            |   |                                          |    |   |   |   |   |   |   |   |   |   |   |
| Assets:                 |   |       | 12/31/2009      |   |                                          |    |   |   |   |   |   |   |   |   |   |   |
|         Available-for-sale equity securities                                             |   |       |            |   |                                          |    |   |   |   |   |   |   |   |   |   |   |
|            Cement industry                                                     |   | $          | 7,910,270       |   |                                          | $       | 7,910,270 |   |   | $ |  -           |   |   | $ |  -           |   |
|            General building materials industry                                 |   |       |  4,091,932 |   |                                          |    | 4,091,932 |   |   |   |  -           |   |   |   |  -           |   |
|            Oil and gas refining and marketing industry                         |   |       | 3,410,106       |   |                                          |    | 3,410,106 |   |   |   |  -           |   |   |   |  -           |   |
|            Residential construction industry                              |   |       | 1,020,500       |   |                                          |    | 1,020,500 |   |   |   |  -           |   |   |   |  -           |   |
| Total      assets measured at fair value                                                                |   | $          | 16,432,808      |   |                                          | $       | 16,432,808 |   |   | $ |  -           |   |   | $ |  -           |   |

|                                                                     |   | Less      than 12 Months |      |   | 12      Months or Greater |   |    | Total      |   |
|--------------------------------------------------------------------------|--------|--------------------------|-----------|--------|---------------------------|--------|---------|-----------------|--------|
| 3/31/2010                                                                |   |                     |      |   | Unrealized                |   |    |            |   |   | Unrealized |   |   |   |   |   | Unrealized |   |
| Available-for-sale equity      securities                           |   | Fair      Value          |      |   | Losses                    |   |    | Fair      Value |   |   | Losses |   |   | Fair      Value |   |   | Losses |   |
|         Cement industry                                        |   | $                        | 416,289   |   |                      | $      | 5,477   |            |   | $ | -         |   |   | $ | -           |   |   | $ | 416,289 |   |   | $ | 5,477 |   |
|    General building                                            |   |                     |      |   |                      |   |    |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|               materials industry |   |                     | 2,234,830 |   |                      |   | 227,114 |            |   |   | -         |   |   |   | -                |   |   |   | 2,234,830 |   |   |   | 227,114 |   |
|            Total                                |   | $                        | 2,651,119 |   |                      | $      | 232,591 |            |   | $ | -         |   |   | $ | -           |   |   | $ | 2,651,119 |   |   | $ | 232,591 |   |

|  12/31/2009                                                               |   |                                 |      |   |   |   |    |   |   |   |                                              |   |   |   |                                                     |   |   |   |
|--------------------------------------------------------------------------------|--------|--------------------------------------|-----------|--------|--------|--------|---------|--------|--------|--------|---------------------------------------------------|--------|--------|--------|----------------------------------------------------------|--------|--------|--------|
| Available-for-sale equity      securities                                 |   |        |      |   |        |   |    |        |   |   |                                                   |   |   |        |                                                     |   |        |   |
|         Cement industry                                              |   | $                                    | 14,600    |   |   | $      | 3,516   |   |   | $      | -         |   |   | $      | -           |   |   | $      | 14,600 |   |   | $ | 3,516 |   |
|         Oil & gas refining                                  |   |                                 |      |   |   |   |    |   |   |   |                                              |   |   |   |                                                     |   |   |   |   |   |   |   |   |   |
|               & marketing industry |   |                                 | 952,168   |   |   |   | 114,528 |   |   |   |                                              |   |   |   |                                                     |   |   |   | 952,168 |   |   |   | 114,528 |   |
|    Residential      construction                                |   |                                 |      |   |   |   |    |   |   |   |                                              |   |   |   |                                                     |   |   |   |   |   |   |   |   |   |
|               industry                 |   |                                 | 381,580   |   |   |   | 32,198  |   |   |   | 105,300                                           |   |   |   | 12,724                                                   |   |   |   | 486,880 |   |   |   | 44,922 |   |
|            Total                                      |   | $                                    | 1,348,348 |   |   | $      | 150,242 |   |   | $      | 105,300                                           |   |   | $      | 12,724                                                   |   |   | $      | 1,453,648 |   |   | $ | 162,966 |   |

|                                                                                  |   | 03/31/2010 |                                        |   | 12/31/2009 |   |
|---------------------------------------------------------------------------------------|--------|------------|---------------------------------------------|--------|------------|--------|
| Fair      valueof      investments                                                    |   | $          | 18,965,280                                  |   |       | $      | 18,419,208 |   |
| Cost      of investments                                                              |   |       | 13,895,280                                  |   |       |   | 14,009,208 |   |
|         Net unrealized gains                                                |   | $          | 5,070,000                                   |   |       | $      | 4,410,000 |   |
|                                                                                  |   |       |                                        |   |       |   |   |   |
| Unrealized      gain recorded in equity                                          |   |       |                                        |   |       |   |   |   |
|    Investments carried      at fair value                         |   | $          | 3,042,000                                   |   |       | $      | 2,646,000 |   |
|         Deferred income taxes                                               |   |       | 2,028,000                                   |   |       |   | 1,764,000 |   |
|                                                                                  |   | $          | 5,070,000                                   |   |       | $      | 4,410,000 |   |
|                                                                                  |   |       |                                        |   |       |   |   |   |
| Proceeds      from sale of equity securities                                          |   | $          | 165,900                                     |   |       | $      | 1,589,076 |   |
| Realized      gains on equity securities                                              |   | $          | 4,172                                       |   |       | $      | 136,853 |   |
| Realized      losses due to other-than-temporary      impairment of equity securities |   | $          | -        |   |       | $      | (524,188 | ) |

| 8. | The      following table presents the components of net periodic pension and      postretirement benefit costs allocated to Cost of Sales and Selling,      General and Administrative expenses for the three months      ended March 31, 2010 and2009: |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                               |   | Pension Benefits  |                                        |   | Other Benefits  |   |
|----------------------------------------------------|--------|------------------------|---------------------------------------------|--------|----------------------|--------|
|                                               |   | 2010                   |                                        |   | 2009                 |   |   | 2010 |   |   | 2009 |   |
| Service      cost                                  |   | $                      | 167,245                                     |   |                 | $      | 421,986 |   |   | $ | 136,392 |   |   | $ | 131,827 |   |
| Interest      cost                                 |   |                   | 515,829                                     |   |                 |   | 1,366,437 |   |   |   | 467,122 |   |   |   | 448,716 |   |
| Less:      Expected return on plan assets          |   |                   | 431,334                                     |   |                 |   | 1,452,208 |   |   |   | -        |   |   |   | -       |   |
| Amortization      of prior service cost            |   |                   | 27,495                                      |   |                 |   | 98,822 |   |   |   | -        |   |   |   | -       |            |
| Recognized      net actuarial loss            |   |                   | 217,163                                     |   |                 |   | 142,775 |   |   |   | -        |   |   |   | -       |   |
| Unrecognized      net loss                         |   |                   | -        |   |                 |   | -        |   |   |   | 180,227 |   |   |   | 195,748 |   |
|          Net periodic expense  |   | $                      | 496,398                                     |   |                 | $      | 577,812 |   |   | $ | 783,741 |   |   | $ | 776,291 |   |

| 9. | Other,      net contains miscellaneous nonoperating income (expense) items other than      interest income, interest expense, gains on equity investments and      dividend income. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10. | Basic      earnings per share of capital stock has been calculated based on the      weighted average shares outstanding during each of the reporting      periods. The weighted average number of shares outstanding was 4,024,198      in      the first quarter of 2010 and 2009. The Company has no      common stock equivalents and therefore, does not report diluted earnings      per share. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11. | The      Company files income tax returns in the U.S. Federal jurisdiction and      various state jurisdictions. With few exceptions, the Company is no      longer subject to U.S. Federal or state income tax examinations by tax      authorities for years before 2006. The      Company believes it is not subject to any significant tax      risk.  The Company does not have any accrued interest or      penalties associated with any unrecognized tax benefits, nor were any      interest expenses recognized during the three months ended March 31,      2010. As      a result of the Patient Protection and Affordable Care Act, as      modified by the Health Care and Education Reconciliation Act of      2010,  we will no longer be able to claim an income tax deduction      related to prescription drug benefits provided to retirees and reimbursed      under the Medicare Part D retiree drug subsidy beginning in 2013. This      resulted in a $685,000 charge to income tax provision during the first      quarter of 2010. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.   | Recently      Adopted Accounting Standards In      December 2008, the FASB issued an amendment to Accounting Standards      Codification (ASC) 715-20, "Compensation – Retirement      Benefits – Defined Benefit Plans – General", which requires enhanced      disclosures regarding Company benefit plans. Disclosure regarding      plan assets should include discussion about how investment allocation      decisions are made, the major categories of plan assets, the inputs and      valuation techniques used to measure plan assets and significant      concentrations of risk within plan assets. These amendments to ASC      715-20 are effective for fiscal years ending after December 15, 2009,      and earlier application is permitted. Prior year periods presented      for comparative purposes are not required to comply. For the Company,      the amendments to ASC 715-20 were effective beginning December 31,      2009 and their adoption had      no material impact on the Company's financial position, results of      operations or cash flows. In      January 2010, the FASB issued Accounting Standards Update (ASU) 2010-02,      "Accounting and Reporting for Decreases in Ownership of a Subsidiary--a      Scope Clarification", which clarifies who the scope of the decrease in      ownership provisions of the Subtopic and related guidance apply to and      expands the disclosures about the deconsolidation of a subsidiary or      derecognition of a group of assets within the scope of Subtopic 810-10.      The amendments in this Update were effective for the Company      beginning January 1, 2010 and their adoption did not have a      material impact on our consolidated financial statements. In      January 2010, the FASB issued ASU 2010-06, "Improving Disclosures About      Fair Value Measurements", which amends Subtopic 820-10 with new disclosure      requirements and clarification of existing disclosure requirements.      Reporting entities must make new disclosures about recurring or      nonrecurring fair-value measurements including significant transfers into      and out of Level 1 and Level 2 fair-value measurements and information on      purchases, sales, issuances, and settlements on a gross basis in the      reconciliation of Level 3 fair-value measurements. The ASU also provides      additional guidance related to the level of disaggregation in determining      classes of assets and liabilities and disclosures about inputs and      valuation techniques. ASU 2010-06 is effective for annual or interim      reporting periods beginning after December 15, 2009, except for Level 3      reconciliation disclosures which are effective for annual periods      beginning after December 15, 2010 and for interim periods within those      fiscal years. For the Company, ASU 2010-06 was effective beginning January      1, 2010. The adoption of ASU 2010-06 did not have a      material impact on our disclosures or our consolidated financial      statements.In      February, 2010, the FASB issued ASU No. 2010-09, "Subsequent Events (Topic      855) – Amendments to Certain Recognition and Disclosure Requirements".      This ASU provides amendments to Subtopic 855-10 to clarify that SEC filers      are required to evaluate subsequent events through the date that the      financial statements are issued, but are not required to disclose the date      through which subsequent events have been evaluated. ASU 2010-09 was      effective upon issuance for the Company and its adoption did not have a      material impact on the Company's consolidated financial      statements. New      Accounting Standards Issued But Not Yet Adopted There      are currently no accounting standards that have been issued that are      expected to have a significant impact on the Company’s financial      position, results of operations and cash flows upon      adoption. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.   | Subsequent      events have been evaluated through the date the financial      statements were issued.  During this period, no material recognizable      subsequent events were identified.  |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| THE      MONARCH CEMENT COMPANY AND SUBSIDIARIES     |
|------------------------------------------------------|
| ITEM      2. MANAGEMENT'S DISCUSSION AND ANALYSIS    |
| OF      FINANCIAL CONDITION AND RESULTS OFOPERATIONS |

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|                                                                                                            |                                             |                                                                                                         |   |  The Monarch      Cement Company                                                                                                                     |   |
|-----------------------------------------------------------------------------------------------------------------|--------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                       |                                             |                    |   |                        (Registrant)                                  |   |
|                                                                                                            |                                             |                                                                                                         |   |                                                                                                                                                      |   |
|                                                                                                            |                                             |                                                                                                         |   |                                                                                                                                                      |   |
|                                                                                                            |                                             |                                                                                                         |   |                                                                                                                                                      |   |
|                                                                                                            |                                             |                                                                                                         |   |                                                                                                                                                      |   |
|  Date      May      11, 2010         |          |                                                                                                         |   |   /s/ Walter H.      Wulf,      Jr.                                            |   |
|                                                                                                            |          |                                                                                                         |   |  Walter H.      Wulf, Jr.                                                                                                                            |   |
|                                                                                                            |          |                                                                                                         |   |  President      and                                                                                                                                  |   |
|                                                                                                            |          |                                                                                                         |   |  Chairman of      the Board                                                                                                                          |   |
|                                                                                                            |                         |                                                                                                         |   |  (principal      executive officer)                                                                                                                  |   |
|                                                                                                            |                                             |                                                                                                         |   |                                                                                                                                                      |   |
|                                                                                                            |                                             |                                                                                                         |   |                                                                                                                                                      |   |
|  Date      May      11, 2010         |                                             |                                                                                                         |   |  /s/ Debra P.      Roe                      |   |
|                                                                                                            |                                             |                                                                                                         |   |  Debra P. Roe,      CPA                                                                                                                              |   |
|                                                                                                            |                                             |                                                                           |   |  Chief      Financial Officer and                                                                                                          |   |
|                                                                                                            |                                             |                                                                                                         |   |  Assistant      Secretary-Treasurer                                                                                                                  |   |
|                                                                                                            |                                             |                                                                                                         |   |  (principal      financial officer and                                                                                                               |   |
|                                                                                                            |                                             |                                                                                                         |   |  principal      accounting officer)                                                                                                                  |   |

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