Forward Market Performance (FMP) is AHDB’s market indicator which tracks the difference between current market prices and prices of the small amount of dairy product traded on futures contracts.  The table below indicates that the FMP calculations suggest that the milk price trend has turned sharply downwards as from September 2017.  Please note also that the price in ppl is my estimate, not that of AHDB, and is based on an exchange rate of €1=89p.  As always, 2ppl needs deducting to account for transport etc. costs, from any AMPE based price.

So it does appear that the recent “bull run” in milk prices is shortly to end.  That does not mean that milk prices will collapse again, but the FMP table above does indicate that they could well weaken in the New Year.  No one should be surprised by this.  After all, milk prices were never going to carry on rising forever.

However, while the price is still strong, use this period to help prepare your farming business for a period of poorer milk prices again.

For more information, please contact Charles at charlesholt@fcgagric.com or your local FCG office.