Butter prices have risen across Europe this week, with spot prices now trading around the €4,900/t mark. Dutch dairy traders are reporting good buyer demand for butter. Futures prices for butter for June 2018 delivery have traded close to €5,000/t in recent days, suggesting strong demand into the second half of the year.
Butter prices have risen across Europe this week, with spot prices now trading around the €4,900/t mark. Dutch dairy traders are reporting good buyer demand for butter. Futures prices for butter for June 2018 delivery have traded close to €5,000/t in recent days, suggesting strong demand into the second half of the year.
Dairy processors will be worried if butter prices exceed the €5,000/t mark, which can negatively affect demand and force buyers to vegetable fat alternatives. Cheese markets in Europe have been steady to rising.
European spot prices for cheddar remain rock solid at a healthy €3,200/t, while mozzarella prices have risen to €2,850/t, with seasonal demand for the traditional Italian cheese set to rise in the weeks ahead.
Europe’s dairy powder markets remain weak overall and are weighing down milk prices. Skimmed milk powder (SMP) remains on the floor at €1,200/t, while whole milk powder (WMP) prices are trading between €2,500/t and €2,600/t.
In New Zealand, the latest GDT auction returned another negative result – the fourth in as many auctions.
Average dairy prices fell 0.6% at this week’s GDT auction, mainly from a big drop (-7%) in anhydrous milk fat prices and a 2% drop in SMP prices to $1,850/t (€1,500/t).
On a positive note, there were price increases for some commodities.
Butter prices increased 4% to $5,500/t (€4,475/t), while cheddar prices were up 2% to $3,680/t (€3,000/t).
WMP rose almost 2% to $3,280/t (€2,670/t) at this week’s GDT, with over 17,000t of product sold.
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