Market News

Cheese up after the long holiday weekend

Some nice gains in the cheese market and in turn the Class III futures on the Chicago Mercantile Exchange on Monday. Barrels gained 4 cents and blocks increased 2.5 cents.  Class III futures with some nice gains, January up 35 cents, February added 44 cents, March increased 36 cents putting that contract back over the $14 mark and June increased 17 cents.

University of Wisconsin – Madison ag economist Bruce Jones says while milk prices tumbled and dairy producer income plunged in 2015, producers knew it was coming and prepared for it. Jones says net farm income dropped significantly but there were four pretty good years for earnings so producers have paid-down debt, built equity and are overall in good shape.  Jones also stresses that dairy producers are still “in the black” and have been through these times before.  However, he adds dairy farmers are not going to have a lot of spendable income so purchases will be minimal in 2016.