- European milk production is down amid the ongoing energy going crisis.
- New Zealand’s production was also limited in the first two months of the season.
- Global dairy prices are still rallying, with butter now at a record high.
The New Zealand Futures Exchange (USD/mt)
- New Zealand’s dairy products rallied again last week, especially skim milk powder and unsalted butter.
Chicago Board of Trade (USD)
- US dairy continued to rise, especially whey.
Eurex (EUR/mt)
- The European butter price climbed again.
- We think the milk shortage drove last week’s rally, as the skim milk powder price is already at a five-year high.
Prices in the Major Markets (USD/mt)
- Europe’s milk shortage, coupled with New Zealand’s reduced production in the first two months of new season, have driven dairy’s rally.
- US dairy prices are slightly weaker, but should catch up in the coming weeks.
Summary
- All eyes are on Europe. Will the current dairy shortage, caused by the energy crisis, become a regular occurrence in Q1’22?
Other Opinions You May Be Interested In…
