The world is currently being distraught by the Russian invasion on Ukraine, halting the daily lives of all Ukrainians. The effects of the military action are felt around the world already in many different shapes and forms, ranging from political uncertainty to economic sanctions and increased prices. A big impact on the short term market is linked to the currency exchange, as it is very volatile and could bring opportunities and risks to almost anyone involved. Causing buyers and sellers around the world to remain careful.
Another big effect is the increased prices for oil and gas globally, resulting in skyrocketing production costs for both dairy farmers and manufacturers. Increased production costs might lower the already low milk production and possibly tighten the global markets even further.
The increased uncertainty and higher production costs are reflected in the enormous increase in prices on the GDT for all products. Although demand has been strong for all products in most regions, it is important to note that low supply has driven prices up as well.
