Inside: Milk & Food
GDT springs up after Chinese celebration of New Years
Again mixed results after the international dairy auction Global Dairy Trade (GDT). For example, fat performed very well, whole milk powder recovered and the final score for skimmed milk powder is somewhat disappointing. What is seen as a positive signal is the volume sold so soon after the Chinese have celebrated New Year's Eve. More in an analysis of Boerenbusiness Milk.
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A total of 21.273 tons of product changed hands at the auction, compared to 22.030 tons in the previous auction. A minus of 3,4 percent. The average price is USD 3.537 per tonne. A plus of 1,3 percent in the price.
The products that finished in green are: AMF (plus 4 percent to $5.765), butter (plus 4,9 percent to $4.593), lactose (minus 12,4 percent to $910), skimmed milk powder (plus 0,1 percent to $2.608) and whole milk powder (plus 1 percent to $3.314). For whole milk powder, an important benchmark on the world market, the price ranges from a minus of 0,2 percent to a plus of 2,2 percent. The only drop is in August. Not immediately worrying because then New Zealand is out of season.
It is skimmed milk powder that demands attention. On average, this is in the plus, but the fact remains that there are decreases for the months of March, May, June and August. A minus of 3,2 percent is even recorded for August. This is offset by a plus of 5,1 percent for July, which may be an indication that the market is counting on less supply from the European Union. The gap between New Zealand's price and Arla's grew to $510.
Drops are noted for BMP (minus 7,5 percent to $2.254), cheddar (minus 3,7 percent to $3.798) and Rennet Casein (minus 0,4 percent to $6.445). Cheddar in particular fell sharply with a minus of 10 percent for March. It seems that the pressure from the US and the EU is mounting.
All in all, the picture is a lot more positive than a year earlier, but what will happen if the milk supply starts to stabilize? The EU and New Zealand are currently in the red, but it does not appear that this trend will be permanent. The offer continues to demand attention.
1 dollar = 0,9394 euros
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