Protein demand and resiliency

Dairy markets had a pretty dull July with range-bound prices for most products. On the bearish side, milk supplies are growing in the main export regions including a stronger than expected U.S. milk production number for June. Milk output has been hit by hot summer weather in parts of the U.S. and Europe, but ideal conditions have prevailed in California. While there has been some progress on U.S. trade deals, higher tariffs and uncertainty with key trading partners have resulted in markets treading water until more is known.

Global prices have seen little change over the last month. The Global Dairy Trade index recovered 1.7% of the 7.5% it lost since mid-May as whole milk powder and skim milk powder prices rose 3% to 4%. In Europe, prices moved lower on a Euro basis. The global supply environment is quite different than a year ago when prices moved higher for some products.

Click here to continue reading

By Mike McCully

hoards.com