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Dairy markets have seen frequent price swings of $2.00 to $3.00 per hundredweight or more over the past year, with participants quickly entering and exiting positions. Prices fell in October, rallied through early November, and were declining again.
Domestic and international dairy demand remained strong, with cheese inventories in line with a year earlier.
Large short-term swings make hedging harder for feed buyers, and uncertainty about demand after the holidays keeps the price outlook unclear. Strong demand supports milk values, but seasonal first-quarter softening could pressure prices.
dairyherd.comRobin SchmahlNov 29, 2022Not 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.
Commentary on extreme volatility with rapid position entry and exit and prices declining again helps explain an outsized one-day futures move through speculative and sentiment-driven selling.
