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China again driving dairy story in 2021

A dairy analyst says U.S. ag exports are not the only commodities impacted by a rise in consumer purchases throughout the pandemic.

Ben Laine with Rabo AgriFinance tells Brownfield as economies across the globe are starting to recover from COIVD-19, China’s growing demand for shipping containers has led to a domino effect backing up commodities at ports in the U.S. and pressuring markets, while other parts of the world have started stockpiling orders.

“You’ve got buyers in Oceania nervous that they won’t be able to containers so they’re buying as much as they can when they can, and that’s really driving prices up really dramatically,” he says.

He says markets are likely to remain volatile as long as countries continue to battle over containers.

Laine adds China still remains a wild card in 2021 as domestic prices for milk there are experiencing all-time highs and are also driving global markets higher.