The slowdown in the world economic growth, in particular in commodity-exporting emerging economies contributes to a persistent general decline in commodity prices, including in still oversupplied crude oil. The slight re-appreciation of the euro to 1.15 EUR/USD affects the competitive advantage of the EU in the world market. In 2016, EU milk deliveries are expected higher than in 2015, leading to strong SMP stock levels and prolonging the period of lower milk prices. Nevertheless, several dairy product prices have started improving. In addition, strong EU exports of butter, cheese and UHT milk and higher Chinese and US import demand contribute to re-balance the market.