The big news this week was the positive Global Dairy Trade (GDT) auction result, where the index increased by 1.6%.
The main mover was whole milk powder (WMP), which increased in price by 2.8% and constitutes over half of all product sold at the GDT.
In contrast, skim milk powder (SMP) which represents about one quarter of all product sold at the fortnightly auction decreased in price by 2.3%.
SMP has been in the doldrums now for over a year and there are no indications that prices are going to rise any time soon, although skim production is declining globally.
The fat side of the house continues to perform well at the GDT, with butter prices up 1.5% and anhydrous milk fat up 2.1%.
The increase in price of butter at the GDT is the opposite of what is happening in Europe, where the spot market price for butter has been declining for the last few weeks.
Over €370/t has been wiped off butter prices in Europe over the last four weeks, but EU prices continue to be well ahead of the GDT price.
It was a more mixed picture for cheese at the GDT. On the one hand, cheddar dropped in price by 1.8% to €4,327/t, but, on the other hand, mozzarella increased in price by a significant 5.4%.
To put that cheddar price in context, the spot market price in Europe for cheddar is €4,825/t, so even though the European price fell by €10/t this week, it’s still a good bit higher than the GDT price.
Sticking with the European market, the price of WMP increased by €35/t this week, while SMP fell by €25/t.
The big news this week was the positive Global Dairy Trade (GDT) auction result, where the index increased by 1.6%.
The main mover was whole milk powder (WMP), which increased in price by 2.8% and constitutes over half of all product sold at the GDT.
In contrast, skim milk powder (SMP) which represents about one quarter of all product sold at the fortnightly auction decreased in price by 2.3%.
SMP has been in the doldrums now for over a year and there are no indications that prices are going to rise any time soon, although skim production is declining globally.
The fat side of the house continues to perform well at the GDT, with butter prices up 1.5% and anhydrous milk fat up 2.1%.
The increase in price of butter at the GDT is the opposite of what is happening in Europe, where the spot market price for butter has been declining for the last few weeks.
Over €370/t has been wiped off butter prices in Europe over the last four weeks, but EU prices continue to be well ahead of the GDT price.
It was a more mixed picture for cheese at the GDT. On the one hand, cheddar dropped in price by 1.8% to €4,327/t, but, on the other hand, mozzarella increased in price by a significant 5.4%.
To put that cheddar price in context, the spot market price in Europe for cheddar is €4,825/t, so even though the European price fell by €10/t this week, it’s still a good bit higher than the GDT price.
Sticking with the European market, the price of WMP increased by €35/t this week, while SMP fell by €25/t.
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