Rabobank is still forecasting global milk prices will start to increase in 2017.
However, the bank's latest Global Dairy Quarterly report suggests there are some factors which could threaten that.
The report says the world's farmers started to react to low farmgate prices by slowing growth in production in the second quarter.
Despite higher buying from China in the first half of the year, the bank reports poor economic performance, low oil prices and geopolitics continue to weaken demand in many regions.
Because of that, Rabobank reports global stocks continue to increase.
Bank analyst Kevin Bellamy says those high stocks and weak global demand could threaten the earlier forecast of higher prices in 2017.
The bank says Britain's decision to leave the European Union could also skew global competition.
The thinking is that if the Euro weakens, it could increase the competitiveness of European products in export markets.
