Inside: Milk & Food
Milk powder attracts attention at moderate GDT
The first Global Dairy Trade (GDT) of April is one of mixed signals. Whole milk powder plus for the third time in a row. However, butter and skimmed milk powder show a minus. More for subscribers to Milk & Feed.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
On balance, the New Zealand dairy auction has as many pluses as minuses. However, the average price increased by 1,6 percent to $3.005. This means that the auction is trading higher for the third time in a row. The traded volume, at 22.498 tonnes, is slightly higher than the previous auction.
Whole milk powder up, skimmed milk powder down
A positive signal is that whole milk powder, which usually sets the tone on the world market, posted a strong increase of 2,4 percent to 2.924 dollars per tonne. This means that the quotation remains just below the limit of USD 3.000 per tonne. Lactose also adds quite a bit. This is an increase of 2,2 percent to 927 dollars per tonne. However, this product is much smaller and therefore has less impact.
Skimmed milk powder must be returned for the sixth auction in a row. This time by 0,8 percent to $ 1.191 per tonne. Butter also cannot avoid a reduction and drops by 1,6 percent to $ 4.751 per tonne. A disappointment is Cheddar, which loses more than 4 percent and amounts to $ 3.288 per tonne. The May contract in particular is under pressure.
The dairy market has been experiencing uncertainty regarding supply and demand these weeks. Demand on the world market is stable, but it is fragile and therefore uncertain. Mixed expectations are expressed about the supply, especially in Europe. 