Inside: Dairy Market
Price rally at GDT is canceled
The price rally on the Global Dairy Trade (GDT) has come to an end. This reduces the chance of a quick bottom in the milk market.
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The prices of dairy products must rise to put a floor in milk prices. This is because the gap between the milk valorization and the payout prizes is still significant. Until now, the GDT paved the way for higher dairy product prices on the world market, including the ZuivelNL quotations.
Skimmed milk powder spoilsport
With the average price index increasing 0,5% to 1,055 points, the GDT is now clearly taking a more moderate tone. On the previous safe, it rose by 5,9%, while it also wrote green numbers the previous times. The minus of 3% (skimmed milk powder) to $1,832 per tonne forms the basis for the overall price drop. Cheddar, whose price usually correlates with the German cheese price (Gouda 45), also lost 1,3% to $3,246 per tonne.
By the way, the internet auction for butter and whole milk powder is not negative. For example, butter rose to $5,334 per tonne (+1,1%), while whole milk powder leveled off (+0,3%) at $3,246 per tonne. The traded volume (20.256 tonnes) is the lowest since last June.