Inside Milk
Global Dairy Trade shows mixed picture
During the penultimate auction, the Global Dairy Trade (GDT) showed the largest increase in 7 months, but that line could not be continued today. Where butter and cheddar show a small drop, the price of whole milk powder does jump.
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The leading dairy auction, organized by Fonterra, reflects the mood of the global dairy market twice a month. Unlike the previous edition, the result this time is not convincing, although the average price is 2% higher to $1 per tonne.
Analysts were more negative prior to the auction and expected a cut of 3%. The traded volume is just below the level of 25.000 tons, a fraction lower than last time.
Milk powders up
The slight increase is mainly due to the price increase of whole milk powder, which rose by more than 2% to $3,777 per tonne. This is a boost for New Zealand, as whole milk powder is the largest export flow. Skimmed milk powder is also slightly higher at $3,302 per tonne. The price of butter is down 1,9% to $4,875. Cheddar wrote a loss of 1,2% to $4,274. This is the first decrease since 5 auction editions.
Market is leveling off somewhat
In Europe, dairy prices have been on the rise recently. The intensity of this has decreased somewhat in recent days and the moderate GDT result makes it more likely that this leveling off trend will continue this week, although many dairy products are in short supply.