MarketWatch
Positive sentiment prevails but many confusing price developments in individual products
Strong protein demand continues to drive the overall dairy market forward, but the price of WPC-80 – the early mover in the milk proteins complex – is in the middle of a freefall. Global milk production remains sturdy enough to keep up with the strong demand in proteins but the resulting milk fat surplus continues to push prices of butter and AMF further down. Therefore the "milk value" continues to move up gradually, but as long as milk production is not hampered by El Nino the supply side is too strong to expect more than a gradual upward trajectory. Buyside activity tends to be robust in the weeks leading up to Thanksgiving and Christmas so we will have to see if the positive market sentiment sustains when we get towards the end of the year.