US dairy prices may affect EU rates

PRICES of most basic dairy commodities rebounded from the start of 2008, according to the Dutch Dairy Board.

But quotations came under new pressure more recently, as fears took hold that seasonal expansion of milk supplies and lack of export demand could easily push the market out of balance.

It looks like EU prices, especially for butter, have to come down further in order to compete on the world market, according to the Board.