Global Dairy Trade climbs again wtih prices up 4.5%
Today's Global Dairy Trade saw prices jump 4.5%, with some of the key results including butter milk powder up 13.3pc.
The Butter index was up 1.1%, the Cheddar index up 11.0%, and the Skim Milk Powder index up 9.8%.
Predictions had indicated that today's trading would see Whole Milk Powder prices increase as limited supplies impacted on a global price surge.
Kevin Bellamy of Rabobank said dairy-product prices are likely to stabilise at current levels rather than continue to harden and while he said production was unlikely to grow substantially through 2017, he pointed out that demand on world markets remained weak.
Recent price surges on the GDT and other trading platforms was underpinned by restricted supplies rather than improved demand, he said.
A sustained growth in dairy commodity prices would require greater activity from both Chinese and Middle Eastern buyers, and there was no evidence of this happening, he said.
On a more positive note for Irish farmers, he predicted that global supplies would remain tight into 2017 and Ireland would be well placed to capitalise on this.
He said the reaction of French and German farmers to expansion opportunities had been "timid", while further Dutch production growth would be curtailed by "environmental considerations".