Skimmed milk powder price takes big steps

Optimism in the dairy market is fueling further. The price of skimmed milk powder shows a big plus on the Global Dairy Trade (GDT) in New Zealand, while European powder prices are also rising.

During the GDT on Tuesday 15 January, skimmed milk powder once again played a leading role. The price rose 10,3% to $2.405 per tonne (price is New Zealand dollar), the highest level in almost 2 years. The upturn is a result of good demand from China and countries in the Middle East.

Based on the business done in the past week, the price of skimmed milk powder (ZuivelNL) will rise by €50 to €1.880 per tonne. The effect of the GDT is not yet included in this, so that a further increase in the coming period is likely; all the more because the European powder mountain is now almost has been wiped out.

Cheddar in the elevator
The price of Cheddar, which correlates with European cheese prices, rose 4,2% to $3.504 per tonne. This is the highest level since September, which offset the price declines seen in the fourth quarter. The price increase is not yet reflected in the German cheese price (Gouda 45). The bottom of the quote shows a minus of €50 to €2.900 per tonne this week.

The milk fat also leaves the rising not released yet. The ZuivelNL quotation rose this week by €7 to €4.350 per tonne, while the lower side of the German butter quotation also rose. On the GDT, the butter quote rose 4,6% to $4.246 per tonne. 

Click here to view all quotes.

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.