Welcome to our weekly market update, in which we will tell you about the developments in dairy the past week and our expectations for coming week.
Welcome to the first ever, OpenDairy market update. Although we like to listen to ourselves talking, we figured this way of keeping you updated is typical for us. Easy, and innovative!
So what has happened this week? After a bearish few months, the recent GDT results provide a silver lining to the dark clouds above the market. Or do they?
Fundamentals did not change. Although we are seeing strong export numbers from the Northern Hemisphere, this demand has not resulted in higher prices in the last few months. Powders are well available and fat and cheese have corrected significantly over the last months as well. Supply seems to be going strong. This doesn't come as a surprise as farmgate prices are not following the downward trend of the commodities.
With these healthy farmgate prices, milk will be there in the peak season of Europe and the US in 2023 as well. New-Zealand has been underperforming, which could explain the buying appetite from buyers who need the New-Zealand product specifically.
The key still lies in demand, how well are the global buyers covered? We will be starting 2023 looking for buyers, anticipating on a strong milk season ahead!
We wish you a nice day, and please reach out to discuss markets and opportunities!