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Class III milk, used for cheese, has fallen 38% this year to about $0.12 per pound as stay-at-home orders shut restaurants, hotels and schools. Total US dairy demand is down 12-15%, with foodservice demand off about 40%.
Processors have little choice but to dump surplus milk.
A demand collapse in foodservice and exports creates a glut that keeps milk prices low, reducing dairy producer margins and feed purchasing power.
foxbusiness.comJonathan GarberApr 14, 2020Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
