GLOBAL – Low dairy prices are set to be prolonged in the absence of a Chinese white knight and a likelihood of strong milk production into next year, says Rabobank.
Milk prices are increasing in Russia, but not as quickly as it was last years. This occurs in conditions of restricted import.
Fonterra’s Global Dairy Trade for dairy products saw prices drop by 7.3% in the latest auction, which took place today (Wednesday).
Trade at Belarusian Universal Commodity Exchange was successful last month.
While Russians are fighting against European and Australian products, milk season is going down in the country.
The prices of milk did not react to the events yet. Some traders just started to demand their increase, forecasting shortage of milk and dairy products.
Ukrainian producers of milk powder were optimistic still recently. They believed that the prices would grow soon. Now they are disappointed.
Forecast of summer successes of producers of fresh milk products was mistaken. Surge of sales occurred only in May. Later the situation was changed.
There is process of inflation in Russia now. Purchasing capacity is declined. All these are resulted in decrease of consumption of dairy products in the country.