The medium- to long-term sentiment in the dairy markets might be really good (see news pages), but that doesn’t preclude ups and downs in the meantime and this week is a case in point. The good news first: at the Global Dairy Trade (GDT) auction, the index increased by 1.1%.
The medium- to long-term sentiment in the dairy markets might be really good (see news pages), but that doesn’t preclude ups and downs in the meantime and this week is a case in point.
The good news first: at the Global Dairy Trade (GDT) auction, the index increased by 1.1%.
The main movers were skim milk powder (SMP), which increased by a surprising 5.9%, and anhydrous milk fat, which increased by 2.3%.
Whole milk powder (WMP), which makes up the vast bulk of products sold at the GDT, was more or less flat, as it has been for the last three auctions since early March.
Cheddar prices also increased by 1.7%, but the quantity traded at the GDT is low.
The increase in SMP price was enough to lift the index by 1.1%, even though butter prices went down by 1.2%, the first fall in price in six auctions. It’s still trading at a high price at over €7,000/t.
Mozzarella cheese also took a hit at the GDT, dropping in price by a substantial 4%.
The quantity of product traded at the GDT was well down at just over 17,600t, as production in New Zealand slows and Fonterra, the main seller at the GDT has more of its product tied up in contracts.
In Europe, the spot market picture was also mixed. Butter took the biggest hit, dropping by €70/t to €7,360/t, which is still over €330/t higher than the GDT price.
European SMP went up by €10/t, while WMP went down by €5/t. Overall, you’d have to say that dairy markets are showing signs of stability across all categories.
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