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Powder demand from Asia and Africa is keeping dairy prices up as the European milk production year moves into the autumn.
There was a strong suggestion earlier in the year that the low oil prices were going to take the steam out of markets and milk price would take a tumble. That hasn’t materialised. Powder demand remains strong and looks to be the most robust product in the short to medium term.
On the supply side the big European milk countries have had a good year but volumes are only slightly ahead of last year's volumes so there is no massive oversupply or extra milk supply that needs to find a home. Overall supply is predicted to remain favourable to the end of the year and global milk flows for the year are likely to grow by between 1% and 2%.
The elephants in the room are Brexit and the US presidential election. Both are key events that may run and run and will potentially cause volatility in the market.
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