There was a bit more positivity in European dairy markets this week, with all of the four key product categories that we cover showing price increases.

This is the first week in many months where that could be said.

Before we get carried away, the gains are small and nothing like the surge in prices experienced at last week’s Global Dairy Trade (GDT) auction where the index was up by 6.3%.

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The biggest gain in the European spot market this week was for skim milk powder (SMP), which increased in price by €60/t to reach €2,055/t.

It’s a small gain, but it’s still reflective of the steady demand for proteins. Both whole milk powder (WMP) and cheddar cheese increased in price by €20/t, while butter prices went up by the minimal €5/t.

Meanwhile, the GDT pulse auctions which took place this week also recorded positive results, with SMP increasing by 5.7% to €2,240/t, while WMP increased by 8.7% to reach €2,949/t.

SMP is ahead of the European price, while WMP lags behind the European spot price. The pulse auctions tend to follow the general trend from the main GDT auction.

Meanwhile, speaking at the Tirlán business updates this week, executives said that on forward selling, they normally do deals three months out, but that when there is a lot of volatility in the market, buyers and sellers tend to opt for shorter contracts of one month or so.

While CEO Sean Molloy was not drawn on a milk price, he said that he expects prices to be in the mid-30s in terms of cent per litre for the coming four months.