The dairy markets worldwide are still seeing a slow period, mainly driven by a lack of demand for most products throughout the last month(s). Combining this lack of demand and a steady production of most products in Q2 due to the milk peak, some sellers were even forced to settle for slightly lower prices in case they needed to move some product. This is why we have seen the bottom of the price ranges for some products drop throughout the last month. Some say this might also be due to the end of the first half of 2022, which is only a week away, which means that people are busy with ending their books for this fiscal period.
In the overall economic landscape, things have changed a little more throughout the last weeks. Decreases in stock markets, crude oil prices, and other markets have removed the bullish sentiment in most markets and have raised some cautiousness. For the dairy market, the main thing to look at at the moment is the consumption, which is not yet lowered as dairy is part of most people’s diet. But the cautiousness is seen a little in some dairy markets, as buyers can not permit themselves to buy months in advance anymore.
