Sep 08 2020

Dave’s Weekly Market Update

Eggs:
The supply and demand on eggs seem to be in balance, and there was no movement in the market this week. The foodservice demand is not there yet and there are plenty of eggs available.

Butter:
Here is a snapshot of what has been going on this week at the CME.

“Butter started rising on Monday and bounced around. 46 loads are good movement as each load is 40,000lbs.”

What I take from this is that some manufacturers are locking in at what they think will be a good value for the 4th quarter. I still feel we will bounce in this basic area for the near future.


Cheese:
The cheese market is on fire again. The government food box program is about to kick in for the 3rd round and there is a lot of volume associated with it.
This might be one of the driving factors spurring this week’s jumps. Since April, these markets have been the most volatile that I have seen in my 39 years doing this. The market averages are way below today’s close. So, if nothing changes early next week, we will see good-sized increases next week.


Swiss Cheese:
Swiss cheese is priced based on the milk markets from 60 days ago as it is an aged product.
Milk prices were at an all-time high and are now is being reflected in Swiss cheese pricing. It is as high as I have ever seen it. We held the prices for as long as we could for you.


A note on the availability of products.
We are in unprecedented times now and the supply chain is under duress. I have never seen such challenges in my career trying to get and source products. I have one supplier who has moved lead times from 2 weeks to 6 weeks.
I need a crystal ball when I order now! For some people, its due to volume increases and not having packaging available.
One supplier AAK (Oasis) has been shorting Buttery Blend since the middle of July. They can’t get help and keep having mechanical issues. It’s been impossible!
In some parts of the Midwest, they can’t get enough help or raw materials to produce all the cheese needed.
It is still possible for someone to collect more on unemployment than if they were working. Most of you are seeing this all over and have been very understanding as we are not the only ones experiencing this. We do appreciate your understanding and we are aware of how frustrating it can be.

I hope that all of you get a nice long weekend to relax as the business has been extremely challenging as of late.

We always thank you for the business that you share with us.