The global dairy market remains a buyer’s market, accompanied by decreasing prices, hesitancy, and uncertainty. It has been this way ever since the availability of products started increasing late last year, and at the same time, inflation and the increasing cost of money began to numb the demand side. We have seen weeks where hesitancy and uncertainty have proven to turn the sentiment bullish and drive prices up fast, but the general trend remains bearish.
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Cheese has played a different role lately, as it seemed like general dairy fundamentals did not apply to the cheese markets. A big part of that is the lower-than-anticipated availability of cheese throughout the producing regions, pushed by the mixed availability of milk and the relatively low valorization of cheese compared to butter or milk powders. We currently seem to be stuck in a narrow bandwidth where prices do move slightly, but there is consensus about a more or less stable cheese market throughout Europe until we move up again after summer this year.