New records for dairy prices in US and EU
EU and international prices weakened subsequently, but seem to have stabilised again. Meanwhile, Northern Ireland’s monthly United Dairy Farmers milk auction set average prices for September at 29.53ppl, an all-time record for the month, 22% ahead of the price 12 months previously.
LTO international milk price records showed the average July milk price for deliveries to 17 of the EU’s top processors at €35.58 per 100kg of standard milk, pushing the July 2008 price into second place.
The US Class III milk price also reached a new record high level, equivalent to €37.09, in July.
According to LTO milk price analysts, EU domestic and export trading activity has picked up, and the most recent Fonterra tender saw only a minor price correction, along with indications of increasing international buyer interest.
However, fears the global economy is losing steam could result in more price volatility, and put pressure to commodity prices later this year and into next year.
