The T.C. Jacoby Weekly Market Report Week Ending November 1, 2024
Last week’s Cold Storage report showed an impressive decline in cheese stocks from March to September. That implies excellent demand for U.S. cheese, driven by spectacular exports. The trade is left to assume that cheese output will step upward several times over the next few months as new and expanded plants start making product.
It was an eerily quiet week on LaSalle Street, with no major reports for the dairy markets to digest. So the trade ruminated on some old news. Last week’s Cold Storage report showed an impressive decline in cheese stocks from March to September. That implies excellent demand for U.S. cheese, driven by spectacular exports. But the Milk Production report showed that U.S. milk output has stabilized. The trade is left to assume that cheese output will step upward several times over the next few months as new and expanded plantsstart making product. If demand falters, supplies could grow quickly. That prospect spooked the markets this week. CME spot Cheddar blocks dropped 6.25ȼ this week to $1.8375 per pound, the lowest price since May. Barrels slipped a quarter-cent to $1.8675.
Butter retreated as well. CME spot butter dropped 2.5ȼ to $2.67. After more than two years of anxiety, butter buyers are finally confident that the larders are full heading into the holiday baking season. But when the price drops low enough, they’re quick to stock up, as evidenced by record-setting trading volumes in mid-October. This week, just nine loads changed hands.
November 4, 2024
ความคิดเห็น