There has been a notable shift in dairy market sentiment in the last week to a more negative outlook. This is a result of a strong start to the 2019 milking season in New Zealand, as well as a swift recovery in milk production in Ireland and the UK after the summer drought.

However, the rising price of oil is positive for dairy markets (oil economies account for 30% of global dairy imports) and should support demand in the medium term. Trading closed at $85/barrel this week and analysts believe oil prices could hit $100/barrel by year-end.