Inside: Dairy Market
Butter and milk powder prices rise on world market
The prices of milk powder and butter have risen considerably on the world market. Knowing more? Subscribe to 'Milk & Feed Pro'.
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Prices for milk powder rose mainly on the New Zealand stock exchange, while butter prices rose on the Chicago stock exchange. The results on the Global Dairy Trade were experienced as surprising, because the value of fats actually increased. The protein-rich products showed a decrease.
Green numbers for butter and milk powder
Butter prices on the Global Dairy Trade rose by about 1,2% to a record high of $6.026 per tonne. The rising prices on the Global Dairy Trade show that the world market is moving towards European prices, which are currently very high. The high butter price is mainly caused by the large world supplies and the increasing demand for products with butter fats.
The price of whole milk powder rose 1,1% on the Chicago spot market to $3.105 per tonne. That is the first increase in 2 weeks.
Butterfat increasingly popular
The expectation for the average American butter price has been revised downwards this year. This brings the price to $2.355 to $2.395 per pound. That equals $5.192 to $5.280 per ton. The estimate is therefore about $100 per pound lower than previously expected.
US butter prices have fallen in recent times as exports declined. However, the prices are still very high, because the demand from the home country is quite high.
The demand for products with butterfat has increased sharply in recent times. This is mainly due to the belief that butter fats are healthier than trans fats. In addition, studies have shown that butterfats may have health benefits.