Global milk prices strengthen as Chinese buying continues
20 December 2013 | By Joel Durkin
CONTINUED Chinese buying has driven a strengthening of international dairy commodity prices during the past
According to Rabobank’s dairy quarterly, prices to mid-December strengthened despite an increase of export
supply because of ‘continuing vigorous buying’ from the country.
Earlier this month Farmers Guardian reported the demand from China had been brought on by the culling of 2
million dairy over the past year, which meant the country’s 35m tonne annual dairy production had fallen short
of its 40m tonne demand.
Rabobank’s report claimed by mid-December whole milk powder (WMP) held above $5,000/t in fob Oceania trade
and other dairy commodities rose between 3 and 5 per cent.
Rabobank analyst Tim Hunt claimed: “Global prices have remained high despite the taps being turned on in key
“China continues to buy exceptionally large volumes of product from the international market to supplement
falling local milk supply and this is likely to mop up most, if not all, of the increase in exports arising from key
surplus regions in Q4.”
The report claimed the global dairy market will enter 2014 with farmgate prices at record or near-record levels
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