Good morning!
We have received a light dusting of snow this morning with a total 2 inches of accumulation. It has made the roads a little slippery but not to bad. The cattle are doing well I could use some sun with no wind so as to get manure along feedbunks to thaw so I could make for easier walking for the cattle but for now we take what we can get.
There is some very good news in the markets to report to you today. Butter went on a tare yesterday. It closed limit up on the futures and 20 cents higher on the cash market. Also NDM closed limit up as well. This is really unusual as this is the biggest one day jump since 2004. Here is the link, ( notice JC I figured out how to do the link insertion thing)
With class 3 also moving up all week and some very sound fundamentals. This is a time to stay out of the futures markets or any cash contracts with your processor. I still think 20 dollar milk this summer will be possible. The Up side is unlimited if we have a dry summer. With NZ having a difficult grass season they are experiencing production shortfalls. This market is setting up to be just like 07-08.
There is also some bad news for America that was posted yesterday in a friendly light by NMPF. The department of transportation has begum negotiations with Mexico to determine how to write the rules to allow Mexican trucks to carry freight into the US. This is the whole story. With the increase in the market price And the shortage of world supplies I think that NMPF should just wait till Mexico needs our cheese and they voluntarily drop their tariffs. No doubt that Mexico is a huge export market however my patriotism is more important than my wallet.
Enjoy your day. BE safe. JR
