There were mixed results in the dairy markets this week and I suppose it’s fair to say some dark clouds could be gathering with Donald Trump’s return to power in the US. Back to the present, the Global Dairy Trade (GDT) auction recorded an increase of 4.8% in the index at this week’s auction, which is a really positive sign of where the market is.
There were mixed results in the dairy markets this week and I suppose it’s fair to say some dark clouds could be gathering with Donald Trump’s return to power in the US.
Back to the present, the Global Dairy Trade (GDT) auction recorded an increase of 4.8% in the index at this week’s auction, which is a really positive sign of where the market is.
There was a big jump for whole milk powder (WMP), which increased by 4.4%, putting it at €3,407/t, which is still significantly behind the European price at €4,190/t. Incidentally, that EU price has declined by €225/t this week, so there seems to be some convergence in price taking place.
There was also good news for butter at the GDT, which increased by 8.8% and now stands at €6,415/t, but compare that to the European price at €7,740/t, which strengthened further this week by €70/t as buyers look to secure Christmas supplies.
The scarcity of butter in Europe is putting real upward pressure on prices, which should benefit Irish producers.
Skim milk powder (SMP) had a good outing at the GDT also, increasing by 4%, while it increased by €15/t in the European spot market.
Cheddar increased by 4% at the GDT, while the European price decreased by €115/t to €5,000/t, which is still over €400/t higher than the GDT.
Trump’s rise to power in the US is unlikely to have any immediate effects, but all the talk of tariffs is bad for trade and Ireland is particularly exposed to the US butter market. The US will still need to buy butter, but will consumers pay higher prices for it?
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