Milk price strengthens on the back of global demand

Further increases in milk prices could be on the cards as global dairy markets remain strong.

Local industry sources conceded that prices for July supplies are likely to harden further on the back of continuing buoyant international demand.

“Right now there is nothing out there that will radically change matters, so we are looking towards a further improvement in milk prices,” one processor source said.

Although the GDT index fell back 1.6pc last week, the overall tone of international dairy markets remains positive.

Industry analysts point out that milk supply and demand remain in balance, with output in Europe remain static, while supply growth in the US and New Zealand is being absorbed by increased American domestic demand and heightened Chinese buyer activity respectively.

 

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World food prices reach highest level since January 2015, FAO

Global food prices have reached their highest level since January 2015, the UN Food and Agriculture Organization (FAO) said on Thursday (3rd August). The FAO Food Price Index, which measures monthly changes in international prices of a basket of food commodities, averaged 179.1 points in July, up 2.3 percent from June. Global food prices rose for the third consecutive month in July, driven mainly by higher cereal, sugar and dairy quotations. This latest rise put the Index almost 16.6 points or 10 percent above last year’s level, FAO said in a press release. The FAO Cereal Price Index reached 162.2 points in July, an increase of almost 5.1% from June and 9.5 percent from July 2016. According to the UN agency, this was caused by stronger wheat prices and, to a lesser extent, also by firmer rice quotations. Wheat values rose the most in July, as continued hot and dry weather deteriorated spring wheat conditions in North America. (more…)

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