Butter prices rallied a notch in Europe this week, increasing by €60/t after taking a substantial drop the week before last. The futures market is pricing in a sharp reduction in butter over the coming months, with a €600/t drop in price anticipated by the end of the year.
Butter prices rallied a notch in Europe this week, increasing by €60/t after taking a substantial drop the week before last.
The futures market is pricing in a sharp reduction in butter over the coming months, with a €600/t drop in price anticipated by the end of the year.
It was also a good week for whole milk powder (WMP), which increased by €95/t to reach €4,335/t, which is the second-highest price in over 18 months.
Skim milk powder (SMP) fell by €35/t, but the biggest drop on the European spot market was for cheddar, which dropped by €150/t.
Meanwhile, over at the Global Dairy Trade (GDT), this week’s auction saw another high amount of product sold, with over 38,000t traded.
The index was more or less unchanged, recording a 0.3% decline on the last auction.
The main movers were mozzarella back 8.2% and cheese up 4.2%. WMP was unchanged, while SMP fell in value by 1.8%. Butter recorded a 0.3% decline.
The latest figures from the Netherlands suggest that milk supply there for September is well back on last year, with a 2.66% decline recorded.
This is smaller than the 4% decline recorded for August, but just goes to show the impact on supply in Netherlands since the increased environmental restrictions set in.
Speaking to those in the US dairy industry this week, it seems that a wave of milk will be unlikely over the next year or two, despite high prices and good margins.
This is despite the fact that there are 18 new milk plants in construction at present, mostly to make cheese and whey.
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