Jul 12 2018

Dave’s Weekly Market Update

Good afternoon to all,

Eggs:
       After weeks of shortages on larger white eggs the supply has rebounded and now the market is declining.We can expect more declines next week.
Butter:
     The butter market at the CME has bounced around this week and ended up .03 higher than last Thursday’s close when we set the market. I believe we will see more of the same fluctuations next week.
Cheese:
     What a wild ride the Barrel market has been on. Last Friday the market closed at a low of $1.245 and by today it has rebounded to $1.4125. The average is lower than the close so if nothing changes next week we will see a .05 increase. These wild fluctuations are being attributed to the trade war with Mexico. Last Friday the tariff went up considerably. Mexico is one of our largest trading partners on cheese and they are now buying out of Europe and South America. As the trade war continues we can expect more wild rides in the markets. The Block rose slightly and the spread between the markets has narrowed from almost .30 last Friday to about .15 today. The normal spread used to be .02-.04 per lb. This also leads to instability in the markets.
Honor Foods would like to thank you for your continued business and wish you and yours a safe and relaxing weekend.