Milk markets remain under pressure

Talk of milk supply control returning in the EU didn’t boost the GlobalDairyTrade commodity auction on Tuesday, with a 2.9% slump to a seven-month low, defying signals from futures markets which had predicted a positive outcome.

Strong EU and US output are still blamed primarily for the market slump.

The EU Commission has forecast EU milk output to rise 1.4% in 2016, after 2015’s 2.3% increase.