Will the Lower Prices for Components Also Reduce Volatility
3 days ago
1 min read
The post on September 25, 2026, finished with a comment that the increased volumes of cheese and butterfat being produced allows a more consistent and adequate domestic supply of components. The excess is being exported. That should reduce volatility in domestic component prices. This post will dig into the current increases and exports to see if volatility is getting reduced.
Protein prices are the most volatile (Chart I). The volatility charts list the monthly changes. One the most volatile months was August 2023 when the price increased by $.74 in one month. In October of 2023, the price dropped by $.55 in one month. in May of 2024, the protein price rose by $!.08 in one month.
John Geuss
October 16, 2026
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