Butter prices were once again the star performer on the European market this week, increasing to €7,510/t, which is an increase of €135/t on last week’s price and brings the increase over the last three weeks to a staggering €540/t. It’s a 14% upward shift in price and is a signal of just how much demand there is in the market for butter.
Butter prices were once again the star performer on the European market this week, increasing to €7,510/t, which is an increase of €135/t on last week’s price and brings the increase over the last three weeks to a staggering €540/t.
It’s a 14% upward shift in price and is a signal of just how much demand there is in the market for butter.
Even at Tuesday’s Global Dairy Trade (GDT) auction, butter recorded a 1.1% increase in price to reach €7,022/t, despite the overall index being flat.
Given that dairy prices remain historically high, a flat GDT auction is not a bad result. It’s worth noting that the quantity of product offered for sale at the GDT at 19,540t is one of the lowest in months.
The main mover at the GDT was mozzarella, recording an increase of 5.1% compared with the previous GDT auction, where it also increased in price.
Positivity
Whole milk powder (WMP) prices increased by just 0.2% to €3,711/t, which is continuing to track well behind the European price at over €4,300/t and which saw a €25/t gain this week.
Skim milk powder (SMP) raw a reduction in price at the GDT, dropping by a relatively slim 0.4% to €2,499/t, which is still higher than the European price for skim, which is sitting at €2,370/t and which recorded a €50/t fall this week, eroding some of the gains for butter.
Despite all the talk of trade wars and tariffs, there is positivity in the dairy markets across Europe and milk prices are beginning to rise again, after dipping slightly since Christmas.
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