MarketWatch
European heat waves take the pressure off of supply, but for how long?
After months of very robust sales pressure EU manufacturers may have felt somewhat relieved by the strong reduction in milk output in the EU regions that were affected by the heat in June and July. With NZ apparently gearing up for a strong start of the new milk production season export competition may heat up even further once temperatures normalize again. Trading activity will inevitably slow down somewhat in the next couple of weeks but many market participants are puzzled about the direction of the market after the holidays. With milk production in the US and Latin America also still quite impressive, many production regions need a strong export performance to balance their market and prevent downward price pressure.