It was a mixed week for dairy markets this week. On the one hand, the Global Dairy Trade (GDT) auction had a really good result, with the index increasing in price by 4.6%.
On the other hand, the prices achieved from the European spot market, based on market analysis, is that prices have fallen across the board.
On the GDT, the star performer from a volume and price perspective was whole milk powder (WMP), which increased in price by a staggering 6.2% to reach €3,862/t, which is a big jump upwards.
Now, it should be said that the volume of product offered at the GDT was low at 16,714t, but it does indicate stronger demand.
This could be a sign of further increased Chinese buying activity and, with virtually no product going into China from the US for the foreseeable, the Chinese will be buying their powders elsewhere.
While WMP increased sharply, the same cannot be said for skim milk powder (SMP), which only increased by 0.5%. This is a product that has been in the doldrums for a long while.
It was a much better result for the fats, with butter increasing by 3.8% and anhydrous milk fat increasing by 5.4%. Cheddar cheese also took a leap forward, increasing by 12.2% to €4,873/t, which is now higher than the European price of €4,655/t.
Staying in Europe, butter prices fell by €100/t this week to €7,160/t, while SMP fell by €5/t to €2,310/t and WMP fell by €25/t to €4,260/t, while cheddar cheese fell by €20/t. The drop is expected as milk supplies are on a seasonal high.
It was a mixed week for dairy markets this week. On the one hand, the Global Dairy Trade (GDT) auction had a really good result, with the index increasing in price by 4.6%.
On the other hand, the prices achieved from the European spot market, based on market analysis, is that prices have fallen across the board.
On the GDT, the star performer from a volume and price perspective was whole milk powder (WMP), which increased in price by a staggering 6.2% to reach €3,862/t, which is a big jump upwards.
Now, it should be said that the volume of product offered at the GDT was low at 16,714t, but it does indicate stronger demand.
This could be a sign of further increased Chinese buying activity and, with virtually no product going into China from the US for the foreseeable, the Chinese will be buying their powders elsewhere.
While WMP increased sharply, the same cannot be said for skim milk powder (SMP), which only increased by 0.5%. This is a product that has been in the doldrums for a long while.
It was a much better result for the fats, with butter increasing by 3.8% and anhydrous milk fat increasing by 5.4%. Cheddar cheese also took a leap forward, increasing by 12.2% to €4,873/t, which is now higher than the European price of €4,655/t.
Staying in Europe, butter prices fell by €100/t this week to €7,160/t, while SMP fell by €5/t to €2,310/t and WMP fell by €25/t to €4,260/t, while cheddar cheese fell by €20/t. The drop is expected as milk supplies are on a seasonal high.
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