Unpredictable cheese prices set the tone for dairy markets

Published 2020년 9월 22일

Tridge summary

The dairy market is experiencing volatility, with cheese prices fluctuating throughout the year, which in turn affects milk prices. Cheddar cheese prices hit record highs in July and August, driving the Class III price to $24.54 in July. However, milk production slowing down and the government's purchase of cheese under the Farm to Families Food Box program contributed to a rise in Class III price, which is expected to approach $19 in October before falling to the $17’s and high $16’s in the following months. Despite the high milk production, Class IV prices have not shown much strength, and the future of milk prices is uncertain due to COVID-19's impact on demand and the potential for increased domestic demand and strong exports.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Volatility continues in the dairy market as cheese prices stay volatile. On the Chicago Mercantile Exchange (CME) 40-pound cheddar cheese fell to $1.00 per pound in April, rallied in May averaging $1.67 and continued to increase in June averaging $2.562, setting a record of $3.00 in July and averaging $2.6466 before falling below $2.00 early August, being as low as $1.58 and averaging $1.773 for the month. The 40-pound cheddar cheese price started to increase the end of August and went above $2 per pound again on September 3rd and has stayed above $2 averaging $2.14 thus far for the month. Cheddar barrels were also $1.00 per pound in April but also rallied reaching an average of $2.3376 per pound in June, $2.408 in July, falling to a low of $1.3175 in August and averaging $1.4937 for the month. The barrel price has averaged 1.62 per pound thus far for September. Impact on milk prices These changes in cheese prices result in the Class III price going from a low of $12.14 in May, to ...

Source: eDairyNews