After a short dip in the market a few weeks ago, it seems like we are now back to price levels seen prior to this. The GDT from yesterday also showed an increase compared to the previous events, indicating a tight market and buyers slowly coming back in the market to take advantage of lower prices.
It seems like the disappointing peak in the milk season from Western Europe and the US is bringing a bullish sentiment to the market. On the other hand, demand was quiet over the last month and with high prices buyers were willing to wait until the last moment – in hope of a price decrease to cover some volume.
Shipping issues are easing, especially in China, however the backlog still remains significant which prohibits a normal waiting time.
The question remains around demand levels for dairy products over the Northern Hemisphere summer. Will inflation and more expensive end products decrease the demand? Or are people excited to go on holidays for the first summer after COVID and therefore spending more money on goods such as dairy products.
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