Global market looks to settle

摘要

The global commodity market has settled. Milk powder markets were weaker in June due to expectations that European intervention stocks will be sold back into the market and cautious buyer activity as the market waited for the next globalDairyTrade auction results. By contrast, the butterfat and cheese markets remained steady, with demand improving in key markets and global supplies still reasonably light. Looking forward, the fundamentals of the global commodity market all point towards firming prices. Ongoing improvements in the global economy will drive the recovery in dairy demand. Also, the global supply remains lighter than usual, with limited trading activity in the Southern Hemisphere.