Jan 31 2020

DAVE’S WEEKLY MARKET UPDATE

Eggs,
     Well I guess I underestimated the egg market last week as it rose a ridiculous 27 cents this week. It has gone up incrementally more every day. My thoughts are another strong increase tomorrow and continuing into next week. We are hearing that Walmart is bidding to buy 90 loads to feature in their stores and this is helping to fuel the rapid rise.
Butter:
     Butter earlier this week dropped to the lowest level in years but rebounded almost a dime between yesterday and today. I expect we have seen the bottom and we will bounce around this level until the demand picks up for Easter and Passover. So far there have been 25 loads traded at the CME which signifies that traders found it to be a buying opportunity.
Cheese:
      There have only been 3 loads of cheese traded this week at the exchange and both markets drifted lower. We are back to the Barrel being .42 lower than the block which used to be unsustainable. The market needs to figure out what the new market spread will be. The days of the Block being 2-3 cents higher seem to be long gone. I still feel the Block has to correct by dropping.