Historically, we observed a high correlation between the value of the milk powder -our main dairy exported - with respect to the price of oil. This relationship was rooted in that half of the destinations of dairy products exported were countries whose economies depended on the oil. But from the year 2009, there occurs a phenomenon that began to attenuate the correlation and was the start of the substantially increased imports of dairy products from China. These purchases were increasing year after year to convert to the asian giant in the main importer of dairy on the planet. The impact of this event was that the high correlation between prices of LPE and the oil existing in the period prior to the year 2009 (R2= 0,75) fell to R2= 0,51.
It is not minor, as oil prices remain low for a long time and perhaps never again to be before (to the US Outlook 2016 mentioned with the greatest probability for a price of approximately 70 US$/barrel WTI from here to 2030).
