Inside: Dairy Market
Indicative milk price again above 30 euros
The indicative milk price for April again breaks through the limit of €30 per 100 kilos, a value that was last achieved in December 2017. It is mainly the rising butter prices that help the milk price in the saddle.
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The German Food Economics Institute (IFE) calculated that the indicative ex-farm milk price for April is €30,50 per 100 kilos (at 4% fat). It is a plus of €1,30, compared to the previous month. The last time the milk price was above €30 was in December 2017.
Big plus in butter price
The indicative milk price benefits from the sharply rising butter prices. The price rose from 437,4 cents per kilo in February to 521,90 cents per kilo in April, an increase of approximately 19%. For the milk price, this means that the fat rating increases to 23,4 cents per kilo.
The price of protein is not doing so well. This fell to a new low of 124,4 cents per kilo in April. As a result, the valuation of protein drops even further, bringing it to 8,5 cents per kilo.
Milk powder a handicap
The dairy market suffered a handicap in the months of March and April due to the falling prices of milk powder. That only changed towards the end of April. The increase continues at the beginning of May, creating a solid basis for the milk price.
At the same time, the index indicates that milk prices were paid in the first months of 2018 that were not supported by the market. Something that usually delays the recovery of the milk price.
The futures market for butter versus the futures market for milk powder.