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Dairy analysts working with the Agriculture and Horticulture Development Board (AHDB) in England have pointed to higher UK farm gate milk prices in the second half of the year in response to the recovery in EU commodity markets.
Based on Rabobank market forecasts for the EU, the upturn in commodity pricing should return a UK milk price of around 29p/l during Q3, up 14% from price forecasts issued in May, suggest AHDB.
During Q4, analysts forecast prices being closer to 30p/l.
However, caution is still being urged for the medium to long term as a global economic recession could hamper buying demand.
Dutch prices
At the latest Dutch Dairy Board auction, skim prices were down slightly, with whole milk powder unchanged, but butter prices were up again, increasing by €150/t to stand at €3,300/t.
Butter prices are up nearly 30% since a low point recorded in April.
MPI
The latest milk price indicator (MPI) from the UFU has recorded its fourth increase in a row, to now stand at 27.69p/l, up 0.4p/l from mid-June. It is now at its highest level since late March.
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