Danger over insulating contracts from market

摘要

Recent dairy market stability has confounded fears that cuts in IMPE would lead to falls in milk prices. Indeed it is only the rise in exchange rates that has prevented prices from rising. The market returns are still higher than 12 months ago and show that cheese, butter and powders are all at an equivalent basis. Seasonally falling supplies and reduced cheese production should mean a continued stability into the autumn. The top graph shows a very stable position since the start of 2004 when cheeseprices returned to a similar level to that of the supported commodities.