Inside Milk
GDT: significant minus for milk powder and butter
During the first Global Dairy Trade (GDT) in July, the red quotations catch the eye. Whole milk powder, in particular, is decreasing strongly and is now practically at the lowest point of this year.
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The mood indicated by the first auction of the second half of 2018 (Fonterra) is not exactly rosy. For example, there are heavy losses for butter, whole milk powder, skimmed milk powder and cheddar.
big minuses
For example, the price of whole milk powder drops to $2.905 per tonne (-7,3%). Only during the first auction of 2018 (January 2) was whole milk powder trading lower. The price of skimmed milk powder is also suffering, falling by 4,6% to $1.913 per tonne. This means that both have broken through the $3.000 and $2.000 per tonne barriers respectively.
Just like in Europe, New Zealand is also declining butter price; by 4% to $5.390 per tonne. Also the price of Cheddar, which correlates with the German one cheese price (Gouda 45), turns red and falls by 4,3% to $3.713 per tonne. All in all, dairy products show a significant negative percentage on the GDT, which may create a negative mood on the European dairy market.
Over a longer period, cheddar and the German cheese price react to each other.