In the US, against the backdrop of the coronavirus pandemic and the restrictions introduced to combat it, prices for cheese have plummeted, writes Bloomberg .
In the context of the second wave of the pandemic, the authorities of most American states are introducing large-scale restrictions, including a ban on the operation of catering establishments. California has a curfew and New York Mayor Bill de Blasio calls quarantine a matter of time.
The cost of cheddar cheese on the Chicago Mercantile Exchange is down 40 percent. On the spot market (with delivery within two trading days), the price for a 40-pound block (18.1 kilograms) fell 40 percent to $ 66.4 ($ 1.66 per pound). The 500-pound (226.7 kilogram) keg of cheese is down 18 percent to $ 700 ($ 1.4 per pound).
Futures contracts for March delivery are still more expensive: the price of a 40-pound block is equal to $ 80 (two dollars per pound), but analysts expect a serious decline in price – to 59.6 dollars (1.49 dollars per pound). p>
At the same time, the drop in the cheese market may not be as strong as experts expected. Fast food restaurants that continue to operate out of the box can mitigate the negative effect.