While the dairy markets continue to be slow and many players seem to be enjoying some time off, the talk of the day has switched to the state of the commodity markets in general. Over the last weeks, we have seen multiple commodities decrease in price very fast and the expectation is that the bottom is not reached (yet). The dairy markets can therefore be labeled as bearish at the moment, mostly caused by the inactivity of buyers on the global market for both dairy and other commodities and ‘recession talks’ by economists around the globe.

In the markets for dairy products, we hear more buyers have enough stocks and are able to wait out further decreases in price. With the currently low liquidity and high uncertainty regarding lowered demand in the future, this sentiment is not looking to change in the coming weeks. A possible lack of available funds might also start to play an interesting role in the coming months, as money (in the shape of products or other items) is stuck in transport or in purchased volumes that are waiting in storage. Possibly limiting the number of trades in the coming months as well.

Start a 14-day free trial below to access the entire Butter and Whey highlights.