May 22 2020

Dave’s Weekly market Update

Good afternoon to everyone.

I think we are all grateful for a long weekend after what we have been going through. We have had a difficult time obtaining products, as many manufactures are way behind due to COVID 19 challenges. Again I am hearing it across the board from many segments of the business world. I feel that things are improving in the dairy arena and am hopeful that next week puts much of this behind us.

Eggs:
The egg market remained flat this week and there were no changes.

Butter:
Butter dropped and then rebounded and we ended up down .01 for the week. 19 loads of butter changed hands at the CME this week. Now that the weather is finally warmer, we should see an increase in demand for ice cream. This will cause the potential for increases in butter.

Cheese:
The cheese markets are on fire. They have gone up almost 100% from the lows that we saw in early April. The government Food Box program, and the resurgence of foodservice demand, are driving it upwards. With many states getting ready to slowly reopen, distributors are trying to build up inventories in anticipation. I think the market has overreacted and may back off some in the coming weeks.

Again, on a personal note, I can not thank you, our loyal customer base, enough for the patience and understanding that most of you have had when dealing with the Honor Foods team throughout this situation. It has been a frustrating time for all of us. It seems like 3 times the effort is needed to do about half the volume of business.

By working together we all will get through these tough times!

Have a restful long weekend!