From the parlor pit 5-28
Well here I was expecting a quite day with no real big changes going into a holiday weekend. I thought brokers would be sitting around and just talking about what they were going to grill and how much landscaping they might have to do for the little woman. Alas I was SOOOO wrong!
Second major announcement:
After losing 26 cents in the June contract for class III milk on tuesday we are now up 29 cents since then with a 17 cent rally just yesterday.
Third major announcement
Briefly I will summerize the link Red meat supplies down 16% dfrom a year ago.
Whats it all mean? WE have an underlieing fundamentall bullish price forcast for milk into the next year for price. Then as markets always do we find something that expands the bullishness ie. the CWT herd buyout, And this time we are not going to be overburdening the supply of beef because we are already lower on our stocks!
Maybe I have been looking for something that is really bullish milk for too long and maybe yesterday will be a buy the rumor and today will be sell the fact but all in all I still view this as a pretty good indication of things to come. Thats all from the parlor pit. Hope it brightens your day. Disclaimer: Don't follow my advice I never do! JR
Re: From the parlor pit 5-28
I wonder how much money CWT has to buy cows. Sombody should know or be able to make an educated guess on this. We know how much they have collected and we know that it will probally not get renewed next year so no one is going to loan them money to do this thing past next year.
Also..I ran my numbers through the cwt calculator, I dont want to sell but just interested, especially after a local mega dairy claimed to have made a boat load of money on this thing years ago. Any way, the dollars I could collect did not look that great. I could probally get that kind of money by just selling my herd to another dairyman