Analysis Global Dairy Trade
Global Dairy Trade is up again
The Global Dairy Trade rose for the ninth consecutive time yesterday. Butter was the driver with an increase of almost 5%, but milk powder and cheddar also gained ground.
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The increase in the GDT is first and foremost a confirmation that the good sentiment on the global dairy markets continues. The average price rose 1,4% to $4,290 per tonne. This makes the increase less extreme than during the previous auctions. The traded volume was slightly higher to more than 31.000 tons.
Largest increase in milk fat
We see the largest price increases in milk fat. Butter prices rose 4,6% to $5,791 per tonne, while AMF rose 3% to $6,668 per tonne. The butter price is therefore at the highest level since last April. Cheddar broke the existing record, rising 1% to $5,220 per tonne. Whole milk powder, the mainstay of Fonterra's milk price, rose 0,6% to $4,008. In historical context, it is rare for the price to move above this level. Skimmed milk powder increased by 1,3% to $3,721 per tonne.
Strong signal
What is striking is that the GDT quotations also maintain the high price levels further away (second quarter 2022). This can be seen as a strong signal. The omikron variant of the coronavirus appears to be having little effect on the dairy market for the time being, while milk supply in important production regions is lagging behind in other years. The latter can be seen as the biggest driver in the market.