Dairy markets this week are largely stable, with some downward and upward movement for different categories.
The European price for butter fell by €40/t to €7,120/t, which is about €100/t below the futures price.
In contrast, skim milk powder (SMP) prices increased by €75/t to reach €2,385/t, which is still a low price and continues to trade below the Global Dairy Trade (GDT) price at €2,497/t.
However, the upward shift will be welcomed and, looking at the futures market for SMP, the European price should start to move upwards as the year progresses, with quotes of €2,685/t for SMP next November. Whole milk powder (WMP) went down in price by €10/t, while cheddar cheese went up by €10/t.
Interestingly, the price of WMP at the GDT pulse auction held this week increased by €116/t to €3,920/t, which is still trading at a discount to European product, but also shows an increase on the last main auction.
The next GDT auction is next Tuesday, so all eyes will be on what happens then.
The reduction of the tariffs between China and the US for the next 90 days may have an impact on the next auction, but the sense I’m getting is that China will continue to increase its purchase of dairy, particularly WMP, and this should bode well for the next auction.
Closer to home, the milk supply data coming from the Netherlands shows that it has more or less caught up to its 2024 position for April, showing just a 0.1% decrease on 2024 levels. When higher fat levels are taken into account, solids are up compared with 2024.
Dairy markets this week are largely stable, with some downward and upward movement for different categories.
The European price for butter fell by €40/t to €7,120/t, which is about €100/t below the futures price.
In contrast, skim milk powder (SMP) prices increased by €75/t to reach €2,385/t, which is still a low price and continues to trade below the Global Dairy Trade (GDT) price at €2,497/t.
However, the upward shift will be welcomed and, looking at the futures market for SMP, the European price should start to move upwards as the year progresses, with quotes of €2,685/t for SMP next November. Whole milk powder (WMP) went down in price by €10/t, while cheddar cheese went up by €10/t.
Interestingly, the price of WMP at the GDT pulse auction held this week increased by €116/t to €3,920/t, which is still trading at a discount to European product, but also shows an increase on the last main auction.
The next GDT auction is next Tuesday, so all eyes will be on what happens then.
The reduction of the tariffs between China and the US for the next 90 days may have an impact on the next auction, but the sense I’m getting is that China will continue to increase its purchase of dairy, particularly WMP, and this should bode well for the next auction.
Closer to home, the milk supply data coming from the Netherlands shows that it has more or less caught up to its 2024 position for April, showing just a 0.1% decrease on 2024 levels. When higher fat levels are taken into account, solids are up compared with 2024.
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