Chinese devaluation affects buying
The devaluation of the Chinese yuan means imports of commodities, including dairy products, will become relatively more expensive for Chinese buyers as the currency falls. As such, prices will be under pressure to fall in order to retain Chinese demand, according to DairyCo.
The 4% reduction in the value of the Chinese yuan would mean that a tonne of WMP, priced at US$2,400/tonne (€2115) in July would cost Chinese importers the equivalent of $105/tonne more at current exchange rates.