Stability is the dominant theme from dairy markets this week, with only minimal changes to prices in Europe and a relatively small drop in prices at this week’s Global Dairy Trade (GDT) auction.
At the GDT, the overall index fell by 0.9% and the traded volume was the lowest at just over 15,000t since 2013.
All of the main products sold at the GDT experienced a price drop, with whole milk powder (WMP) falling by 1% and skim milk powder falling by 0.7%.
In many ways this is a bit of a correction from the last auction, particularly for WMP where it went up by a massive 6.2% on the 6 May sale. So, at €3,846/t, WMP is the highest price since April 2022.
The drop in price for butter of 1.5% is somewhat offset by the increase in price for anhydrous milk fat, which increased by 0.9%. Cheddar took a big wallop at the GDT, dropping in price by 9.2% to reach €4,446/t, which is €214/t behind the European price for cheddar. Incidentally, the price in Europe is holding steady, falling in price by €5/t this week.
Staying in Europe, there was no change to the price of butter or WMP this week, with SMP increasing in price by €5/t.
The stability in the markets is welcome, particularly given the spring flush, which usually depresses the spot market, which these prices are based on.
Of course, milk production in Europe is not increasing, with French supplies back 2.3% in February 2025 compared with February 2024. On top of that, Europe’s largest milk producer Germany is back 3.6% for the first three months of 2025 compared with 2024.
Stability is the dominant theme from dairy markets this week, with only minimal changes to prices in Europe and a relatively small drop in prices at this week’s Global Dairy Trade (GDT) auction.
At the GDT, the overall index fell by 0.9% and the traded volume was the lowest at just over 15,000t since 2013.
All of the main products sold at the GDT experienced a price drop, with whole milk powder (WMP) falling by 1% and skim milk powder falling by 0.7%.
In many ways this is a bit of a correction from the last auction, particularly for WMP where it went up by a massive 6.2% on the 6 May sale. So, at €3,846/t, WMP is the highest price since April 2022.
The drop in price for butter of 1.5% is somewhat offset by the increase in price for anhydrous milk fat, which increased by 0.9%. Cheddar took a big wallop at the GDT, dropping in price by 9.2% to reach €4,446/t, which is €214/t behind the European price for cheddar. Incidentally, the price in Europe is holding steady, falling in price by €5/t this week.
Staying in Europe, there was no change to the price of butter or WMP this week, with SMP increasing in price by €5/t.
The stability in the markets is welcome, particularly given the spring flush, which usually depresses the spot market, which these prices are based on.
Of course, milk production in Europe is not increasing, with French supplies back 2.3% in February 2025 compared with February 2024. On top of that, Europe’s largest milk producer Germany is back 3.6% for the first three months of 2025 compared with 2024.
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