The T.C. Jacoby Weekly Market Report Week Ending October 11, 2024
The dairy markets are seeking a balance at prices that encourage greater milk output without killing demand. For several weeks, that required a steep descent from a dizzying peak. This week they appeared to find their footing.
The dairy markets are seeking a balance at prices that encourage greater milk output without killing demand. For several weeks, that required a steep descent from a dizzying peak. This week, most milk and dairy product prices finished lower than where they stood last Friday, but they appeared to find their footing. Week-to-week losses were modest and several Class III and Class IV futures contracts managed to climb a few cents this week. Dairy producers can expect milk revenues around $20 or $21 per cwt. for the next several months.
Butter prices continued to decline. Butter buyers spent most of the year bidding aggressively to stock up ahead of the pre-holiday rush. They hoped to avoid the kind of fall spike that they suffered in each of the past two years. Their fear of paying $3.50 for the last few loads of butter needed to supply the holiday baking season pushed them to spend nearly $3 on every load they put away for eight months. But that’s over now. CME spot butter fell another 6.25ȼ to $2.625 per pound, the lowest price since January.
October 14, 2024
Comments