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Maxum Foods' June global dairy update says markets turned the corner in May as COVID-19 restrictions eased and foodservice demand recovered. It warns that uneven reopening will slow recovery and that stock-builds in SMP and butter are a risk.
Slowing US and EU milk output is expected to offset part of the demand slump.
Surplus SMP and butter stocks cap upside in those products and could weigh on milk prices. Slower milk output from the US and EU provides partial support.
dairyreporter.comJim CornallJun 2, 2020Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Foodservice demand recovery as COVID restrictions eased and slowing US milk output tightened the supply-demand balance and supported prices in May and June.
