The price of oil and that of cheeses.

Global market

Link between oil barrels and dairy products

Strange as it may seem, there is a link between the price of the barrel and that of dairy products (as milk powder, cheese), particularly on those with a large export market.

CLAL graphic elaboration

Observing the historical series, starting from 2009, of the price of Cheddar cheese,

the cheese produced with the best-selling cow's milk in the world, especially in the areas with the greatest Anglo-Saxon influence and whose market does not show significant influences of seasonal variations, and the price of Spray Whole milk powder, together with the trend in oil prices, there is a good parallelism, even more evident starting from 2014, between the trend in oil prices and that of milk products.

The OPEC countries are significant buyers  of cheeses

This is explained by the fact that the main oil-producing countries, especially those belonging to OPEC, are also the most significant buyers of these foods. In these areas, the more or less high inflow of money, which is a function of the price of the barrel, guides the availability of accepting more or less high prices of the offer of dairy products.

The beginning of 2020 saw the disappearance of the parallel trend in the prices of Cheddar and milk powder, with the price of the first rising and the drop in the price of the latter, a similar situation occurred between June and August 2010, after which the price some powdered milk went up again and the barrel began to increase until it reached its historical maximum.

Data and graph from CLAL website  according with its legal note