Rabobank: Global dairy industry sees short-term rally in first quarter of 2018
Previous expectations for the extent of pressure on global markets in the second quarter of 2018 have moderated, with a global rebalance looming in the second half 2018.
A robust import program by Chinese buyers, combined with a weather-impacted New Zealand season, combined to create a short-term rally for the global dairy industry in the first quarter of 2018, according to Rabobank’s latest RaboResearch report, “Dairy Quarterly Q1 2018: Turn the Pressure Down.”
The export engine has been running on most cylinders since mid-2017. However, weather risks have now been extended beyond New Zealand. Europe battled a cold front; Australia had localized bushfires; and drought conditions are at play in Argentina, Utrecht, Netherlands-based Rabobank said.