International dairy industry hopes for a recovery have faltered after prices fell to a five-year low on GlobalDairyTrade – even as positive prices in the U.S. lift dairy margins to a record high. Prices on GlobalDairyTrade fell by 3.1% to their lowest since August, 2009 reflecting more than a 5% drop in values for both whole milk powder and skim milk powder – both which are favored purchases of Chinese buyers, who are retreating from the market in order to use down stockpiles. The latest auction dashed industry hopes that this year’s dairy price slide was ending after the recent slight price decline of 0.3% at the November 4th auction, and the 1.4% price increase at the October 15th auction. U.S.-based Dairy Management & National Milk Producers Federation stated in their most recent report that milk prices will remain depressed until at least mid-2015 as milk production continues to increase in exporting countries, and goes on to state that futures indicate that U.S. margins will be considerably lower in 2015 despite U.S. prices defying the global downturn for most of 2014.
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