Prices are rising across the board for dairy commodities at the moment.
Recent weeks have seen the sector on nervy but stable ground on account of not much happening until people knew what was happening with Brexit.
But now the deal, plus a buoyant GDT, low or now-zero stocks in storage, and milk volumes being below expectations in Germany and France (the big EU players), have turned the sentiment even more positive than before Christmas.
Some traders are talking about trading long for the first time in two years – a surefire indication the buyer thinks there’s more price lift on the way.
Glanbia lifted its base milk price 0.5c/litre but the biodiversity bonus dropped off so December price is effectively the same for milk suppliers. Lakeland held and has seasonal bonuses for those that qualify in the South. Kerry held its price.
That’s the big three effectively holding for December, so milk suppliers will be pushing for more in early February when January prices are set.
The timing looks good for the Irish seasonal supply.