With Q3 approaching, we slowly see more activity in the markets for dairy commodities. The milk intake was better throughout the last couple of weeks, causing additional production of some products. Due to the increased production for some products and the resulting increased supply, we have seen most prices in the dairy market under pressure lately. While some products such as WPI and Cheddar have been showing a really steady and strong sentiment with an ongoing tight market.
On the demand side, buyers have been able to hold off their purchases throughout the last months due to their higher inventories. But in the European market, it seems that most buyers are left uncovered for Q3 and Q4 and would generally enter the market somewhere in the next few weeks. With the recent decrease in prices, however, they seem to be waiting out as long as possible until they have no other option but to start covering to keep their factories running.