Global dairy markets appear to be stuck in the doldrums at the moment, with current and continuing global oversupply depressing sentiment. The current Eurex quotes suggest butter prices slightly strengthened at €2460 (up €20 since last month) and SMP prices of around €1640 (up €10 since last month). Those quotes (albeit reflective of spot markets) are suggestive of milk prices below 20c, and will bring about supply moderation across most milk producing regions.

The April Ornua index has slipped further (to 81.4), and while it is significantly outperforming the market, it demonstrates the continuing weakness across all products and all markets.

TJ Flanagan

Dairy Policy Executive