Dairy Quarterly Q2 2012 - "A Slow Squeeze is Coming"
- Dairy commodity prices fell through April and May before a small rally in June.
- Prices were pushed down by exceptional supply growth in export regions.
- A small ‘realisation’ rally followed in June.
- Supply growth is expected to lose momentum through 2H 2012.
- Demand will remain lacklustre in the face of a weak global economy.
- The market looks most likely headed for stable pricing through Q3, yielding to a slow squeeze in Q4, with the price recovery gaining legs in early 2013.