Inside: Dairy Market
GDT: butter price reaches ceiling
The first Global Dairy Trade (GDT) in July means a flattening of the butter price, a sharp minus for skimmed milk powder and a plus for whole milk powder. The average price writes a minus of .................
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In the past 5 auctions, the butter price on the GDT has only written green figures. This marked the good sentiment in butter, which was particularly apparent in May. The price increase continued in June, but to a lesser extent. At the first auction in July, a flattening (+0,1%) is visible at a price level of USD 5.775 per tonne. This means that the butter price seems to have reached the ceiling. There is also a lot of resistance in the Netherlands and Germany to the rapidly rising butter price.
$5.775
per ton
Skimmed milk powder down
The price of skimmed milk powder fell sharply, given the minus of 4,5% to $2,090 per tonne. This means that the skimmed milk powder on the GDT is moving along with the recent declines in Europe. In Europe, skimmed milk powder has fallen into the red, because Brussels produces skimmed milk powder intervention has sold. However, this is a very small volume. The market expects skimmed milk powder to stabilize quickly in Europe. Especially because skimmed milk concentrate is scarce and the milk supply is declining.
The price drop of skimmed milk powder in the Netherlands that started on Tuesday, July 4, was also visible on the GDT.
Full milkpowder
The 2,6% plus of whole milk powder to $3,111 per tonne is due to good export figures from New Zealand. The price increase had already been predicted by analysts in advance. In May, the New Zealand dairy sector exported 19,2% more whole milk powder than the same month last year.