- Dairy prices have soared around the world alongside the ongoing energy shortages.
- Easing COVID restrictions have also had an impact.
- This Opinion is brought to you by Dairy Online.
The New Zealand Futures Exchange (USD/mt)
- New Zealand’s dairy products were all rising last week, especially the milk fat products that had been stagnant for two weeks.
- Both the trade volume and price increased.
The Chicago Board of Futures Exchange (USD)
- The US butter price fell last week, but the other varieties rose sharply, especially the whey and skimmed milk powder prices.
The European Commodity Futures Exchange (EUR/mt)
- European butter and skimmed milk powder prices remained on a vigorous upward trend.
- Prices have now breached the record high for the year.
- The remarkable rally comes as COVID lockdowns are lifted, and production costs have risen.
Comparison of Prices of Spot Products in Major Markets (USD/mt)
- In general, the European dairy price is way ahead of the other regions and the export market for the EU products in the coming year should be more difficult.
Summary
- Europe’s energy shortages and the consumption rebound brought by the lifted COVID lockdowns are the main reason for the current price rally in Europe market.
- We won’t likely see a decent pullback in Q4’21.
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