Dairy commodity prices slumped 5% this week in New Zealand at the latest GDT dairy auction. The price of skimmed milk powder (SMP) fell 5%, while the price of whole milk powder (WMP) plunged more than 7%. Butter prices were down 4%.

Boosted by the ongoing trade tensions between the US and China, Brazilian soya bean exports for June grew by 13% year on year to hit 10.4m tonnes – a record for the month. In May, Brazil exported 12.4m tonnes of soya beans.

Global barley stocks are forecast to fall to 23m tonnes by the end of this season – the lowest in six years. The fall in stocks is due to lower barley production in the EU and the Black Sea region. World barley production for 2018 is pegged at 145m tonnes – down 1%.

US soya bean prices have this week fallen to a nine-year low of $312/t ($8.48/bushel) as market fears grow about the impending 25% tariff on all US soya bean exports to China. Prices were also pushed lower thanks to healthy growing conditions in the US, which could yield another bumper harvest.