The “battle” between dairy sellers and buyers has hit a new peak lately. Over the past couple of weeks, prices have dropped significantly as sellers continue to favour liquidity over stocks. Albeit less active, it was enough to pique the interest of some buyers, who are now willing to purchase products for a low price for December and January mostly.

As expected in such a situation, sellers quickly reacted to the increase in demand. In response, they have removed some of their offers from the market, causing a temporary price increase. A decrease, however, which should be observed at least until the end of the year, seems inevitable as sellers continue to see high stock levels.

Despite its bearish outlook, the dairy market appears to be stabilising at the moment. However, it doesn’t mean volatility is fading away, especially since players continue to cover for nearby positions only.

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