Nothing much happens on the dairy trading front in the last two weeks of Christmas.
The slight dip in the whole milk powder price in the GDT prior to Christmas was the last movement and every other product was more or less steady.
Getting wheels for transport in some parts of the world is an issue around Christmas and sometimes this can lead to a spike in price for various commodities, for example, cream and butter in parts of the UK. But most of that will wash out in the first two weeks of the new year as trade normalises.
Thoughts turn to 2022 and what will happen with trade. Will COVID-19 take another turn or two? How will it affect dairy prices?
Will the difference between interest rates and food inflation impact on consumption?
Is China settled or will the banking situation over there spill into dairy markets?
There are other trade and geopolitical issues that could also bite on the dairy trade. So it’s a case of wait and see what 2022 will bring.
The prediction game is difficult at the moment. However, it’s safe to say prices are good for now and markets are steady so for Irish seasonal producers where the majority of product is produced in the first half of the year you would say the prospects should be good for 2022 in terms of output prices.
For producers the big issue is the input prices for feed, fertiliser and energy that are taking any cream out of dairy markets for the end producer.