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An analyst said cheese prices had reached a point that required a correction, with the block-barrel spread widening to a record near 35 to 40 cents before narrowing to about 15 cents. January Class III futures fell almost the limit, down 75 cents per hundredweight, on the decline.
The analyst expects prices to level off and possibly recover.
A sharp drop in Class III futures weakens expected milk income and could slow dairy herd expansion, reducing demand for dairy feed over time. The expected leveling off suggests the decline may be a correction rather than a sustained trend.
brownfieldagnews.comLarry LeeDec 17, 2019Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
