Will Higher Feed Prices Mean Higher Milk Prices? (JAV)

Markets always have a tendency to fall faster than they increase. That was very evident again recently as Class III futures plummeted over a three-day period. Cheese prices fell as buyer’s needs for fresh cheese were filled temporarily. A price void developed under the market as buyers leap frogged over each other trying to get their hands on available loads before price moved too much higher. This is similar to what takes place at a farm auction when a few people want something and are willing to continue to run the price up. The daily spot market is a price auction with buyers and sellers doing a similar thing, but for a different reason. Even though the spot market trades for a limited time each day and sometimes can move more than the underlying fundamentals for a period of time, it is an accurate representation of supply and demand....