Futures markets fall on reduced supply concerns

Published 18 July 18

The recovery in EU milk deliveries in May seemed to calm market concerns over product availability for later in the year. The forward curve for the future value for milk (FMPE) changed direction in the early part of June, with prices moving downwards. This resulted from decreasing prices on both butter and SMP contracts as traders start to discount the price needed to secure future supplies.

FMPE Forward Curve

Looking ahead, as information on the impact of the weather on milk deliveries becomes available, and buyers return to the market to cover the final quarter of the year, price direction may change again.