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Analysts expect bearish global dairy demand through 2020
Dairy analysts say a potential global dairy recovery isn’t likely through the end of 2020.
Jason Kurzawski with StoneXsays there remains a bit of downside risk through the fourth quarter as COVID-19 outbreaks continue.
“Is there a really strong bird coming through the market right at the moment? I don’t think so.”
Dairy economist Nate Donnay says he’s bearish on global dairy demand as GDP numbers indicate another drop is possible near the end of the year.
“Given the price strength that we’ve seen, maybe it’s just going to take more time for that weakness to show up, maybe instead of Q4, it shows up in Q1.”
Overall, dairy demand is somewhat stronger than analysts had expected throughout the pandemic which has supported prices to a point this summer through strong milk production.
Both speakers provided insights during StoneX’s virtual Global Dairy Outlook Thursday.
