Growth in milk supply globally has slowed due to cold and wet weather. Demand is steadying across the main products despite the continued overhang of powder stocks.

Global milk production growth in March fell under 2% due to the terrible spring weather. March Milk production in the main regions were as follows: EU (+1.2%), US (+1.3%), New Zealand (-1.5%) and Australia (+2.5%).  The European Commission sold 24,066 tonnes of SMP product from intervention on the 17^th of April. This represents the largest sale of product from intervention since the process to release stock started in December 2016. There are tentative signs of a strengthening in fresh SMP prices and a divergence in prices between old and new product. Better powder demand is noticeable with the assistance of rising oil prices a factor. EU exports of SMP to Algeria have increased by 87% year on year. The EEX Index for SMP at €1472 represents an increase on recent weeks but remains below the historical intervention price. The EEX Butter Index at €5863 has increased to elevated levels again, as availability tightens.