Dave’s Weekly Market Update – August 6, 2020

Good day to all!

Even with the extreme heat, the egg market remained flat this week. Medium eggs did drop slightly. There are still too many birds out there and the supply is long.

Over a million pounds of butter changed hands this week at the CME. The supply of butter is adequate as compared to the demand.
With temperatures being so hot. it is a double-edged sword.
Fat components of milk drop as cows drink more water to stay hydrated. This reduces the fat content.
Also ice cream demand skyrockets in this heat. The end result is a strong draw on a reduced cream supply.
People sold a lot of butter at the exchange yesterday – driving the market down. It rebounded today, and I believe it will do more of the same tomorrow.

Fluid cream rose slightly for August due to the butter prices in late June and early July. The change was only a few cents a quart.

The Block market is correcting from the record high of $3.00. From what I am seeing there will be more to come.
The Barrel market dropped some today also. There is an inverse spread of .065, with the Barrel being higher than the Block.
The usual way this corrects itself is when the Barrel drops more.

Business is quiet out there. Most of the customers we have been talking to feel its due to COVID-19 cases escalating.
Many people are just not comfortable going out to restaurants at this point. Hopefully, things begin to stabilize so our industry can rebuild itself.

We all wish you a safe and relaxing summer weekend and as always thank you for your continued business.