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4/25/2016 - Managing feed costs in 2016: The 30,000-foot view

You have all heard the expression “30,000-foot view.” Commentators often use this phrase when explaining something in a very broad sense. Recently, my wife and I decided to take our four daughters on their very first plane ride. The anticipation of the event was so thick in the days that led up to it that you could cut it with a knife. Read more here ---  

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4/25/2016 - Money Flows Continue

As we touched on last week, there has been a wave of cash that has entered our market.  Everyone would like to know "Why?" While it is difficult to manage in one's own mind, it is important accept that fundamentals have not been the primary driver in pushing beans $1.70 higher since early March, rallying corn 50 cents since early April, and KC wheat 60 cents in the past 2 weeks. As we discussed last week, there has been much made of the Argentinian wetness and Brazilian...

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4/19/2016 - GDT & Feed Prices Show Life

In a market reaching for some good news, the milk market was able to find something to smile about in the Global Dairy Trade.  Today's event was led by Whole Milk Powder markets which finished 7.5% higher and accounted for over half of the event's volume.  Consequently, the Index rose 3.8%, the largest uptick in prices since last December.  The disappointment came in cheddar prices which fell 3.9% to $1.20/lb...not the news that the cheese market needed at this moment....

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4/18/2016 - Macro Market Fundamentals Give Life To Rally

While planting conditions (Corn = 13% planted vs. 5 yr average of 8%, Soybeans will be scored for the first time next week) will consume a large portion of the conversation in the coming days, several other factors have been busy at work in recent days to create support for the market. These conditions, of course, are often fickle and can change quickly. However, in the interim, stars have aligned to allow some opportunity for those who have been waiting. Brazil has been...

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4/12/2016 - Butter Leads The Charge

Since the beginning of April, butter has enjoyed a wild ride from sub $2/lb to levels that yesterday reached $2.20/lb and then fell to $2.07/lb.  See Chart. This has had a more profound impact on Class IV milk than Class III offerings, but each have benefited from the rise.  Class IV prices through the remainder of the year have rallied 72 cents since the start of the month.  Meanwhile, Class III prices have rebounded 35 cents from their April low last week on the 6th. The...

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