It was a steady week in the European trading houses this week, with only slight increases in price for most commodities.
Unlike last week’s Global Dairy Trade (GDT) auction where the index fell by 1.6%, the main commodities in Europe held firm this week.
Butter increased by €10/t, as did whole milk powder (WMP), while cheddar cheese prices increased by €5/t and there was no change to the price of skim milk powder (SMP).
According to the latest Ornua market report, trading activity usually picks up at this time of year before the traditional holiday period in Europe starts.
Ornua is expecting prices to harden over the coming weeks, but says that global market uncertainty – brought about by Trump’s tariffs and geopolitical factors – means buyers remain cautious.
Having said that, the futures market for European butter is very stable, with prices expected to hold firm until at least winter 2025.
The futures for SMP is suggesting prices are set to rise gradually over the coming months and converge with the price being achieved in Oceanic markets, which the GDT price for SMP continuing to run higher than the European price.
Milk supply in China continues to decline, after years of rapid growth.
Production there for the first four months of 2025 is estimated to be down by 4.2%, as smaller farms and non-processor-aligned farms shut down.
China is a very expensive place to produce milk, with most feed imported, much of which comes from the US.
It was a steady week in the European trading houses this week, with only slight increases in price for most commodities.
Unlike last week’s Global Dairy Trade (GDT) auction where the index fell by 1.6%, the main commodities in Europe held firm this week.
Butter increased by €10/t, as did whole milk powder (WMP), while cheddar cheese prices increased by €5/t and there was no change to the price of skim milk powder (SMP).
According to the latest Ornua market report, trading activity usually picks up at this time of year before the traditional holiday period in Europe starts.
Ornua is expecting prices to harden over the coming weeks, but says that global market uncertainty – brought about by Trump’s tariffs and geopolitical factors – means buyers remain cautious.
Having said that, the futures market for European butter is very stable, with prices expected to hold firm until at least winter 2025.
The futures for SMP is suggesting prices are set to rise gradually over the coming months and converge with the price being achieved in Oceanic markets, which the GDT price for SMP continuing to run higher than the European price.
Milk supply in China continues to decline, after years of rapid growth.
Production there for the first four months of 2025 is estimated to be down by 4.2%, as smaller farms and non-processor-aligned farms shut down.
China is a very expensive place to produce milk, with most feed imported, much of which comes from the US.
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