MarketWatch
The dairy market wakes up from the holidays in a balanced mood
Markets are starting to wake up after a slow couple of weeks during the holiday season, but whereas last year August marked the beginning of very bearish market conditions, this year prices of most dairy commodities feel mostly range bound. Within this overall stable market environment it feels though as if the fat side of the market is struggling to keep its range whereas proteins and lactose could break out at the top end of their range. This new reality of higher value contributions from proteins and lactose and a lower contribution from fat is addressed in this month’s “nice to know box” in the SMP chapter. In the weeks between this August issue and the next in September we get some answers on the capability of EU milk production to match last year’s strong jump in output volumes after July, as well as the strength of the new season In Oceania, but for now the market feels overall balanced.