Nov 01 2019

DAVE’S WEEKLY MARKET UPDATE!

Good afternoon to all,

Eggs,
     As predicted the egg market went wild in the past few days, Tuesday plus .03, Wednesday plus .05 and today plus .10.  I expect a lot more of the same beginning tomorrow as this trend develops and continues.
Butter:
     Butter bounced around a little bit this week and I am surprised how low the price is for this time of year. I do not see any jumps in price coming even as we approach the peak demand time of the year in the coming weeks.
Cheese:
     Cheese is another story altogether. A few weeks ago there was a .45 cent spread with Block being higher than Barrel and now there is a .11 inverse spread!  That is a .56 cent change. One thing I heard that the govt. bought 4,000,000 lbs of american cheese and this drove the market up. It is unheard of for the Barrel market to be this high at this time of year! The busiest time of year for American cheese is around Memorial Day and the 4th of July. Both markets closed higher than the averages which means if nothing happens we go up again. My thoughts are that we will see a fast and furious correction of the markets at some point in the near future. I do not feel that anyone should build up inventory levels at this point. Keep on hand what you need and protect your company’s inventory position.
Cream:
      Due to the recent downward trend of butter cream prices are dropping for the month of November. We still have Light cream in Springfield that we are trying to move as we are somewhat long on it. Dairy Star by Saputo dated 12/7-12/15. If you can use some please reach out to see what deals we have for you.

Honor Foods thanks you for your continued business and hope you all have a great weekend.