Volatility still the rule in dairy product prices

摘要

As has been the case throughout the COVID-19 pandemic, cheese prices have been the most volatile in the dairy market if not across the entire commodity and food ingredient spectrum. CME Group cheddar prices plunged about 40% during November with demand going forward clouded by the surge in coronavi-rus cases. CME Group cheddar barrel and block prices fell to more than decade lows in early April when much of the foodservice sector, which consumes a large part of cheese and butter production, shut down as the country sheltered at home. Prices then rebounded sharply after Memorial Day, more than doubling from April lows and nearly tripling in the case of cheddar blocks by early July. The upsurge was fueled by producers modestly curbing milk production and by the reopening of restaurants and other foodservice options, while retail sales of cheese remained well above average. The government's food box program added another demand outlet. Good export demand spurred by low prices in April and early May also added support.