A number of Irish processors lifted milk price for November over the last 10 days.

Some have not lifted base price but instead included a bonus of one form or another.

Market sentiment is good at the moment, underpinned by rising GDT auction results.

While we know the GDT results are not the be-all and end-all for Irish milk prices, they do give an indication of how that important axis between New Zealand and China is operating.

Positive picture

The Rabobank quarterly report again paints a relatively positive picture in terms of global milk prices. It states several factors in 2021 will aid positive consumer sentiment in key dairy markets, including advanced states of several COVID-19 vaccines, less political uncertainty after the US election, a weaker US dollar that aids commodity prices, and projections for economic growth in most regions after the 2020 recession.

Milk supply

It also says global milk supply is slowing and the growth will be less than in 2020, with the COVID-19 vaccines stabilising the food service sector and lower stocks in Europe.

The warning in the report comes in the form of changing oil prices and currency valuations. It cites several factors to watch out for next year, including exchange rates, the US aid package, Brexit, China’s stocks, high grain prices and the La Niña weather pattern in the southern hemisphere.

Overall, Rabobank is predicting an average price for 2021 and into Q1 2022.

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