GDT index records 0.7% price drop
The second and final GDT event for July ended with a slight drop of 0.7% in the index price, which now stands at US $3,201/t.
It is the first GDT event since 5 May to record a negative result, and is basically a small price correction after an 8.3% increase two weeks ago. Butter prices fell by 4.9%, while skim milk powder recorded a 0.5% drop in value. However, both cheddar and whole milk powder rose by 0.6%.
Small increase in EU milk production
EU milk production is expected to rise by 0.7% year on year towards 148bn litres in 2020.
However, a short-term market report from the European Commission points out that the growth in production has effectively already occurred, with milk production during the next six months set to contract by 0.2% compared to 2019.
The reports forecasts EU butter production will rise by 3% in 2020, with exports set to rise by 15%. EU cheese production is expected to rise by 0.3%, and while consumption is expected to fall by 0.4%, exports are predicted to grow by 2%.
Skim milk powder production is also set to rise, up by 5% in 2020, although export volumes are forecast to fall by 10%, bringing them back in line with 2018 levels, after a surge in exports last year.
Demand for whole milk powder is expected to be strong, with production up 0.5% and consumption increasing by 0.8%.
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GDT index records 0.7% price drop
The second and final GDT event for July ended with a slight drop of 0.7% in the index price, which now stands at US $3,201/t.
It is the first GDT event since 5 May to record a negative result, and is basically a small price correction after an 8.3% increase two weeks ago. Butter prices fell by 4.9%, while skim milk powder recorded a 0.5% drop in value. However, both cheddar and whole milk powder rose by 0.6%.
Small increase in EU milk production
EU milk production is expected to rise by 0.7% year on year towards 148bn litres in 2020.
However, a short-term market report from the European Commission points out that the growth in production has effectively already occurred, with milk production during the next six months set to contract by 0.2% compared to 2019.
The reports forecasts EU butter production will rise by 3% in 2020, with exports set to rise by 15%. EU cheese production is expected to rise by 0.3%, and while consumption is expected to fall by 0.4%, exports are predicted to grow by 2%.
Skim milk powder production is also set to rise, up by 5% in 2020, although export volumes are forecast to fall by 10%, bringing them back in line with 2018 levels, after a surge in exports last year.
Demand for whole milk powder is expected to be strong, with production up 0.5% and consumption increasing by 0.8%.
Read more
Dairy management: grassland tour goes virtual
Tracking feed efficiency on Dairylink farms
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