Rabobank Dairy Quarterly
June 2011

Key highlights:
• International dairy commodity prices continued to trade at extremely high levels through Q2 2011.
• Pricing was sustained early in the quarter by vigorous buying from China and Russia, which soaked up extremely strong supply growth in milk surplus regions.
• As the quarter progressed, price support became more reliant on supply constraints, as rising feed costs, dry conditions in the EU and seasonal decline in the Southern Hemisphere kept the market tight despite reduced import growth.
• Import buying from China and Russia is likely to move closer in line with prior year levels through the second half of 2011 – underpinning a stabilisation of import demand.
• With exportable supply likely to expand modestly, Rabobank anticipates some downward pressure on pricing through the back half of 2011, though pressure may be delayed till early Q4

Rabobank_Global_Dairy_Qly_June_2011.pdf