Global Dairy Trade continues to rise happily

While the dairy market in Europe is currently leveling off, the GDT continues to maintain its upward momentum. The average price rose 1,9% this week to $4,287 per tonne. This is the fifth time in a row that the auction has been in the green. The traded volume exceeded the 30.000 ton mark for the first time since January.

Butter price driver
The butter price is the driving force this week with an increase of 3,5% to $5,534 per tonne. This is the highest level since April this year. Cheddar also showed a notable increase, with an increase of 2,2% to $5,162. The listing thus improves the existing record set during the previous auction edition.

Milk powders also continue to increase, although less rapidly than during previous auctions. Whole milk powder, the mainstay of milk prices in New Zealand, is rising by 1,9%, approaching the $4.000 per tonne mark. Skim milk powder increased 1,4% to $3,676. The market may have hoped for bigger increases based on the futures, but that was not possible this time. 

Lower milk supply
Although the milk supply in New Zealand is currently working towards the seasonal peak, this is not yet putting pressure on the market. This probably has to do with the fact that the supply this year is considerably behind previous years. We will find out whether the GDT result will trigger a reaction in Europe on Thursday when the dairy quotes from DCA Markets are announced.