The outlook for milk prices in 2019
Posted on: 03/01/19
All the signs point towards more than a glimmer of hope that farmgate milk prices might just be on the brink of stabilising.
Futures prices are now posting small daily and weekly positive increases. In addition Intervention stocks of (aged) SMP are now reduced to only 100,000 tonnes from the 380,000 tonnes over hang in store only 9 months ago in March 2018.
There are two tenders for the remaining 100,000 tonnes in January and the sooner its all sold the better.
In addition most dairy product prices appear to be stable if not rising.
It’s all nudging in the right direction. If both Arla and Muller hold for February (Note Muller has already announced a February price hold) any price reductions for March must be challenged.