What’s the headline outlook

Commodity prices for SMP and butter continue to weaken in the forward and spot markets, which is of concern.  However, the current spell of hot weather across Europe was the main talking point at  this week’s Dairy UK Dinner and Seminar with most realising production is set to drop below forecast unless the weather changes.

Spot milk is reflecting the mood of buyers with trade now at 35ppl and trending up on almost a daily basis.

Several milk purchasers have notified producers of July and August milk price increase stressing the need to maintain profiles and supplies as well as updated forecasts.

As we all know mother nature can wreck any predictions in a matter of days and the only sure way to guarantee farmers will feed compound to replace lost milk production is if the milk price incentivises them.