Market Analysis with Bill Brooks
The cash cheese market inched higher Monday. Downes-O’Neill dairy broker, Bill Brooks, said in Tuesday’s DairyLine that we’ve been running a pattern of establishing lower highs throughout the year and he expects that to be the case. $1.89 was the most recent high in mid October, he said, but it’s likely the current market will reach $1.80 but it’s not out of the question as we are in the holiday period and there’s a lot of uncertainty where we will be.
The market is moving higher, sales are decent, and no one is in any hurry to try and stop the upward movement and as long as the market is being pushed higher, no one is in a tight situation as far as needing to move product so the price will continue to work its way higher but it’s unlikely it will reach $1.80.
Brooks made his comments prior to the release of the October Milk Production report. He expected gains similar to those in September. Weather has been good, he reasoned, and October’s weekly slaughter data slowed quite a bit so it’s possible that cow numbers have also grown relative to September as well and that could put pressure on the market.
When asked about the steady butter price, Brooks said “We’re not selling enough product to push the price higher but we’re not seeing enough being made to push the market down. Brooks reported that he hadn’t seen much retail featuring of butter of late but have actually seen features on margarine but he’s now seeing some sales on butter so hopefully that will move some product.
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