Insight Focus
- Dairy prices in New Zealand, Europe, US supported last week.
- Uncertainty over Chinese demand as country emerges from COVID restrictions.
- Chinese factories raise milk powder production to use up excess raw milk.
Market Overview
Dairy prices in all three markets were supported last week by generally bullish agricultural commodity markets, lower-than-expected European dairy production and high US inflation.
The only uncertainty is how soon and how well will China recover from this round of COVID outbreak, and whether any resulting demand might further support dairy prices.
The Chinese domestic market is currently trying to use up excess raw milk supply. Factories in the north have no choice but to increase milk powder production, which could cap milk powder prices over the rest of the year.
New Zealand
- New Zealand’s dairy price rose for another week.
- European demand for New Zealand butter rose significantly due high domestic prices.
USA
- US dairy price were supported for another week, especially the skim milk powder price.
Europe
- European butter and skim milk powder prices rose for the second straight week.
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