Dec 06 2018

Dave’s Weekly Market Update

     The egg market dropped slightly this week and we do not expect anything major either way. Holiday baking is still taking place but there seems to be plenty of supply.
     Butter bounced around this week but ended up with no change. This is the time of year we typically see declines. The market never went too high so if demand keeps up maybe there will not be a large correction.
     Both markets dropped slightly this week. Barrel dropped more today so if nothing changes next week we will see more of a decline as the close is lower than the average.  American cheese is now the least expensive cheese in the world so maybe this might spur some export activity and hold the market up. Inventories are at 20 year highs as the Tariff situation drastically curtailed exports to our large trading partner Mexico. Maybe we will finally see some stability in the markets. The Block Barrel spread did increase to .1075 after last week’s more normal .045.