Business Dairy
Milk powders suffer damage during GDT auction
The Global Dairy Trade that took place yesterday (Tuesday 3 November) is negative for the milk powders. Both whole and skimmed milk powder show a significant minus. Butter is the positive exception to…
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With a loss of 4,4%, the price of skimmed milk powder fell to $2,722 per tonne. It was the fourth decline in a row, which underlines the lower sentiment on the global powder market. Skimmed milk powder has also been under pressure in Europe for several weeks, because demand has fallen sharply.
Whole milk powder is decisive
Whole milk powder kept the damage more limited with a loss of 2% to $2.985 per tonne. Nevertheless, a setback for dairy farmers in New Zealand, as whole milk powder determines the level of payment prices. The Fonterra forecast for the current season was recently increased due to positive price developments in recent months.
Butter price is higher
The overall sentiment at the leading dairy auction was negative for the first time in 3 auctions. The average price fell 2% to $3.096 per tonne. The escalating second wave of corona and the associated government measures in many countries seem to be a logical explanation for this.
The GDT butter price, on the other hand, rose by 3,9% to $3.822 per tonne. This is a favorable development for European exporters, who have a price disadvantage on the world market. The price of cheddar moved quite steadily with a nil loss of 0,8% to $3.786.