Interesting perspective just out on the wire highlighted in bold below. If MGC could look to their affiliates to kerb production then we may see a faster turnaround in local milk prices. I'm sure the change at the director level is going to bring some thinking along these lines.....
0220 GMT [Dow Jones]Given abundant supply, there is little hope of the dairy situation changing significantly in the next few months on global milk markets, says Commerzbank in a note. "Only towards the end of the year and in the coming year should the rise of global production be sufficiently curbed to give moderate tailwind to prices, amid more strongly growing demand again--not least in China where imports are on the rise again." It adds from a political perspective, discussions in the EU and Germany have turned again to the question of whether producer associations should use the possibility of temporary voluntary quantitative production restrictions. "In an effort to release pressure from the market, the maximum EU intervention volumes were roughly doubled to 100,000 tons for butter and 218,000 tons for skimmed milk powder in April."([email protected];Twitter: @lucy_craymer)
MGC Price at posting:
97.8¢ Sentiment: None Disclosure: Held
