This week’s Global Dairy Trade (GDT) auction increased by 1.6% and follows on from the last auction which registered no change in price.
This indicates that the market is getting more settled.
Gains in the European spot market slowed this week too, so, all in all, it could be considered that the market is steady.
At the GDT, the big gain was for whole milk powder (WMP), which increased in price by 2.1%, while skim milk powder (SMP) increased by 1.2% compared with the last big auction. Both of these products dipped in price at the mid-term pulse auctions, albeit with much smaller volumes traded.
However, quantity was back at this main auction, with total product sold at 29,559t, which is well back on the 36,000t sold earlier in the season.
Butter prices increased by just 0.7%, while cheddar took a big jump, increasing in price by 9.7%, which shows the increased demand for cheese over recent weeks.
Closer to home on the European spot market, results were a bit more mixed, with butter falling by €10/t to €5,620/t.
This is the first sign of a levelling off in butter prices since it started its ascent in September.
It follows a sharp enough drop in US butter prices over the last few weeks, with the European Commission now saying that US butter prices are down 10.2% over the last two weeks.
There was better news for WMP, which increased in price on the spot market by €45/t to hit €3,765/t and it continues to make steady gains.
SMP fell by €10/t to hit €2,610/t on the spot market.