European butter prices took another hit this week, dropping in price by €210/t to reach €7,470/t, which is down €650/t on its peak price four weeks ago.

So it looks like the peak hasn’t lasted, at least for butter.

Actual prices are trailing the futures market at the moment, so any co-op that forward sold based on futures is doing better than those that kept to the spot price.

The futures is predicting a price of around €6,800/t by next January, which is a signal that the current Irish milk price will be under pressure as we head into next spring.

In contrast, skim milk powder (SMP) is holding steady and the futures is predicting prices to rise for SMP over the next few months, so that may help to balance things.

Whole milk powder (WMP) fell by €70/t this week, while cheddar cheese prices were steadier, dropping in price by €20/t.

So, all in all, it wasn’t a good week in the dairy markets, although the steady prices for SMP and cheese is a good sign.

There was a rise for SMP at this week’s Global Dairy Trade pulse auction, increasing in price by €47/t.

Meanwhile, WMP increased at that auction only marginally by €17/t. The next GDT is next week, so that will tell more about the state of the global market.

Milk supplies within Europe are reported to be up by 0.7% for the first eight months of 2024 compared with 2023, but key exporting regions such as the Netherlands and Ireland are back significantly on last year, while the US is back almost 1% on milk supply.