A broker and analyst says cheese reached a price point where a market correction needed to happen. Pete Turk with Vault Ag and Rice Dairy says, “We had a little bit of a mini-storm, so-to-speak, where barrels really accelerated higher and kind of took the lead on this cheese move to the point where we saw a record spread between the block and barrels. If I’m not mistaken, (it was) north of thirty-five cents perhaps even close to forty cents which is just unsustainable, and I think the market now has gone to a point where its rebalancing itself and bringing it back to normalcy.”
Turk tells Brownfield 30 to 60 days ago, there were production issues, there was good demand on the spot market for cheese, decent export sales, and regionally tight milk supplies.
Continue reading Analyst expects cheese and milk futures to level off soon at Brownfield Ag News.
