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 OpenDairy market update.
We have seen a relatively quiet and weaker tendency this week. Global demand is still limited and the November trade figures support this statement. Liquid milk prices seem to have stabilized in Europe, but supply is still outweighing demand. Fat and cheese have weakened further, powders show a large range of prices depending on specification and origin.
The situation in Europe is clear with ample milk supply and weak global demand. Drying capacity is full, not a good sign for the upcoming milk flush. But also in the US, sales pressure is growing as well. Retail prices for dairy and other food products do not correct as quickly as the underlying commodity markets, meaning consumer demand will be limited as well.
Producers and traders are all competing in the small pool of demand. We have seen purchase tenders in Asia and North-Africa filled this week and the reported levels do not show any signs of trust in a firmer market anytime soon. It will get worse before it gets better.
Have a great weekend.