David Maloni's Page

The chart of the week is the international cheddar and the CME block cheese markets. US cheese inventories are historically ample and September US cheese output was 4% larger than the previous year. Still, the cheese markets are moving higher. Actually, basically all of the dairy markets are moving upward. The first major culprit is the decline in US milk output. The trade is anticipating a decrease in the available supply of dairy products in the coming months. But another major reason is due… Continue

The chart of the week is the US CME block cheese and international cheese markets. As one can tell from the chart, the two markets have trended fairly well together during the last eighteen months or so. Why is this? Well, the principal reason the surge in cheese prices started in the spring of 2007 and continued throughout most of 2008 is due to an increase in US cheese exports. You may remember the scenario. New Zealand, the world’s largest dairy exporting country, was in the midst of a two… Continue

The chart of the week is the weekly number of cattle slaughtered that grade prime. As well documented for the past year, the percentage of cattle grading choice has been trending well above prior year averages. This is due to a couple of factors including the trend of cattle staying on pasture longer and entering feedlots with greater maturity. At times during the past year, the percentage of cattle grading prime has also trended well above prior year averages. Right now is one of those times.… Continue

The chart of the week is the value of the Australian dollar (versus the US dollar) and the US 90% beef trimmings market. What does one have to do with the other? Good question! First we remember that beef processors utilize trimmings to make various beef products including the ever popular hamburger. Typically, a hamburger processor will mix 90% beef trimmings with a fattier trim, say 50% trimmings, to make their product. In the US, we produce at lot of fattier beef trimmings. So much so that… Continue

The chart of the week is weekly chicken production and the boneless skinless chicken breast market. Chicken producers have pretty much kept chicken output curbed throughout 2009 thus far. However, as the chart indicates, chicken production has edged upward since July. Broiler egg set numbers during the spring and early summer, which give us an indication of pending chicken production levels, did trend ever so slightly upward from earlier in the year which is partially behind the increase in… Continue