In Europe, despite the seasonal increase in the supply of milk, producers prefer not to send it for drying. Besides intervention stocks is still the actual problem. And there are no preconditions for decrease.

Recently, the Commissioner for agriculture stated that the intervention skimmed milk powder will not be sold until the price is high enough in order not to destabilize the market. But in fact, it falls due to the presence of these stocks. Earlier in such cases, they practiced the shipment of goods within the framework of assistance programs to the needy, which also affected the market, but indirectly and less painful.
 
Now the price of skimmed milk powder in Europe has fallen below the intervention level (1 698 euros). As a result, the possibility of new interventions on the market is being discussed more often.
 
So, at the end of March the prices of export offers in Europe have been formed at the following levels: food skimmed milk powder— 1 800-1 950 dollars/ton, fodder one — 1 750-1 800 dollars /ton FOB Northern Europe. Market of whole milk powder is also not balanced: the demand for the product is low, as a result, the price decreased to 2 800-3 050 dollars/ton.

The situation is a little different on the market of milk powder in Oceania. Here the price of skimmed milk powder has also collapsed, but the situation has improved for sellers of whole milk. Europe has the major impact on the market of skimmed milk powder; reserves in the United States also play their role.

Similar trends were observed at the last auction GDT. In addition, the result on whole milk powder is an additional proof of the strengthening of this market in the region. Because at the last auction this item was offered approximately 10% more, that wouldn't necessarily contribute to price growth.

Milk powder in the United States becomes cheaper. In addition to the influence of external factors like the high offer on the competitive markets and weakened demand, the pressure is provided by increased seasonal production and the availability of certain stocks of goods.

Over the last two weeks of March rates of skimmed milk powder have not changed significantly. At the auction of the Chicago stock exchange on March 30, the products was trading low at 1 790 $/t EXW.

Dairynews with reference to agronews.by