# Uncertainty due to COVID-19 lowers dairy product demand

> Wisconsin economist Bob Cropp says COVID-19 uncertainty will keep dairy demand depressed until the virus is better controlled. CME cheddar block prices peaked at $3 per pound on July 13 and fell to around $1.71 by late August. The August Class III price is near $19.45, and Cropp expects it could slide into the $16 range.

- Date: 2020-08-31 · published 2020-08-31T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/51628-uncertainty-due-to-covid-19-lowers-dairy-product-demand
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Weaker dairy demand and falling cheese prices point to lower Class III milk prices through year-end, which reduces the value of milk-based feed inputs for buyers.

## Read by commodity

- MILK: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| MILK | 2020-09-01 | 1 | -16.1% | -5.4 | Cropp's note that block cheese fell from $3 to about $1.71 amid weak COVID-driven demand, with Class III possibly sliding to $16, supports a bearish repricing of futures into the Sept 1 drop. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2020-04-28 | [COVID-19 continues to hammer dairy prices](https://feedsoft.ai/events/5177-covid-19-continues-to-hammer-dairy-prices.md) | -12.8% | -7.6% |
| MILK | 2022-07-12 | [Lee Mielke: Dairy product demand weakening \| Capital Press](https://feedsoft.ai/events/40633-lee-mielke-dairy-product-demand-weakening-capital-press.md) | -0.8% | -12.3% |
| MILK | 2020-03-25 | [COVID-19 pandemic rocks dairy markets \| Capital Press](https://feedsoft.ai/events/54272-covid-19-pandemic-rocks-dairy-markets-capital-press.md) | -0.2% | -17.5% |
| MILK | 2020-04-08 | [Dairy outlook: COVID-19 lockdowns impact cheese and butter](https://feedsoft.ai/events/53640-dairy-outlook-covid-19-lockdowns-impact-cheese-and-butter.md) | -2.5% | -18.1% |
| MILK | 2026-04-27 | [Market, pricing changes force dairy producers to adapt \| Agriculture \| nwestiowa.com](https://feedsoft.ai/events/19878-market-pricing-changes-force-dairy-producers-to-adapt-agriculture-nwestiowa-com.md) | +1.4% | +0.5% |

## Sources

- farmprogress.com: https://www.farmprogress.com/dairy-cattle/uncertainty-due-to-covid-19-lowers-dairy-product-demand

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.