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April, May and June contracts for whole milk powder (WMP) have been stable for the last week, leading to hopes that Tuesday’s global dairy trade (GDT) price index will record a second consecutive rise.
At the close of trade in New Zealand markets (NZX) last Wednesday, futures prices for WMP had recorded a 1% drop in price from the weekend prior. However, prices remained stable for the rest of the week.
The next GDT is due to take place on Tuesday 4 April and while never set in stone, the futures market for WMP can act as a decent bell weather for buyer sentiment in global dairy markets.
As can be seen from the red line in the graph below, the futures market price for WMP is currently stable. As a result, dairy farmers will be hoping these steady futures prices can lead to another positive GDT.
At the last GDT, average prices paid for milk products rose by 1.7%, while the price of WMP climbed almost 2.9% to $2,855/t.
Butter has been capturing large interest from the Irish dairy industry in recent weeks. At the last GDT, butter recorded an increase of 4.9%, the largest rise of any commodity at the trade. With Ireland now the largest exporter of butter in the EU, dairy farmers should hold one eye on its performance at Tuesday’s GDT.
Dairy Trends: Increased WMP supply drags GDT performance
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