The announcement by Fonterra that no cheques will be issued for July shows the level of volatility in global milk prices over the past 12 months. The largest exporter of milk didn’t foresee these prices. As Europe enters peak milk production, the immediate outlook remains uncertain but some speakers at the DIN conference this week suggest the bottom of the market is close. The lower Chinese imports and the impact of the Russian ban are being felt. While the challenges such as continued strong US supply are obvious, there are some positive headwinds such as currency exchange rates and steady EU production.