Close on 6% drop in milk prices at auction
They have fallen more than 30% since a near four-year peak in March last year, but remain above May levels, because they jumped 13.5% on Jun 5.
Rabobank experts predict global diary market stable pricing through the third quarter, a slow squeeze in the fourth quarter, and price recovery in early 2013,
“Assuming the continued loss of supply momentum, and even a small demand improvement, the market will significantly tighten in early 2013,” according to the bak’s dairy market forecast.
However, the bank cautioned over near-term price prospects, saying that the market rebalancing is likely to occur only gradually”.
