LIVESTOCK MARKETS: Slowing EU milk production driving price rally

LIVESTOCK MARKETS: Slowing EU milk production driving price rally

Several factors could limit dairy price gains in near to medium term.

It's rare for international dairy markets to rally in August, with European traders on holiday and the Oceania region in its off-season, but this year, commodity prices, with the exception of skim milk powder, have jumped 25-30% in a matter of weeks. The main driver was the long-awaited slowdown in supply growth from the European Union, which brought worried buyers off the sidelines, according to the U.S. Dairy Export Council's (USDEC) latest issue of “Global Dairy Market Outlook.”

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