# Extreme Market Volatility is Becoming Normal - Dairy Herd

> 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.

- Date: 2022-11-29 · published 2022-11-29T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/8748-extreme-market-volatility-is-becoming-normal-dairy-herd
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

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.

## Read by commodity

- MILK: neutral

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| MILK | 2022-11-30 | 1 | -5.8% | -3.8 | 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. |

## Sources

- dairyherd.com: https://www.dairyherd.com/markets/milk-prices/extreme-market-volatility-becoming-normal

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