Today’s dairy markets are still showing bullish signs due to the low production of most dairy products in most regions. A lack of available milk (and therefore dairy commodities) has caused producers to renegotiate with buyers, while leaving irregular customers uncovered as there was simply not enough volume produced.
While producers and sellers are put in an uncomfortable position regarding volume negotiations, regarding price levels they seem to be in full control. Demand is not looking to ease as protein consumption remains very high, causing multiple buyers to be looking for limited quantities. This creates the opportunity for sellers to ask for higher prices and therefore slow down forward trading, leaving most activity to be done on the spot markets.