Global Dairy Trade down again

The further weakening sentiment was already partly anticipated by analysts. After the unprecedented rapid advance in February and March this year, the quotations had to cautiously give up some ground they had gained in the following months. Things then went faster at the July 6 auction and prices were reset by 3,6%. On average, prices at today's auction fell by 2,9% to a level of €3.839.

Livestock farmers are increasing production worldwide
In many of the major export areas, milk production has been increasing recently, stimulated by higher prices. In New Zealand, for example, the total additional volume produced has not been completely sold on the world market, which means that stocks have been built up. In addition to the production growth in New Zealand, milking is also taking place smoothly in the United States and Europe. Furthermore, despite the subsiding of the negative consequences of the corona pandemic, the demand for dairy products is not yet fully meeting expectations.

The steepest decline was in the prices of lactose and milk powders. Lactose recorded a minus of no less than 8,9% to a level of $1.127. Skimmed milk powder fell 5,2% in price to $2.971 and whole milk powder lost 3,8% of its price to $3.730. Relatively modest declines occurred for butter (-0,8%) and butter concentrate (-0,5%). Butter is now trading at $4.419 and butter concentrate at $5.615.

Cheddar more expensive
The positive oddity was the cheddar. This product traded 1,3% higher at $4.022. The total supply at today's auction was approximately the same as at the July 6 auction. A total of 24.580 tons of product was offered, of which just under 22.500 tons were sold.