Analysis Dairy Business
Global Dairy Trade starts the new year quite listless
The first auction day of the Global Dairy Trade (GDT) of the new year has started with a barely noticeable plus of 0,3%. Whole milk powder remained stable in price, skimmed milk powder recorded a small plus. The biggest plus was cheese, a small product in the Global Dairy Trade.
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A positive thing about this auction is that the price trend was at least upward again. At the last auction at the end of last year, the index was at a minus of 1,5%.
Skimmed and whole milk powder remain separate
There was an expectation among traders that skimmed milk powder at this auction could come close in price to whole milk powder. That didn't happen. Whole milk powder averaged $3.866 per tonne, a paltry $3.773 per tonne. That is an average of 1% more than at the previous auction. In Europe, eyes are most focused on the latest product. Arla skimmed milk powder from Denmark/Germany sold for $3.815 per tonne (€3.380). The same product from Sweden and the UK sold for $3.785 (€3.354).
The graph above shows the prices for skimmed milk powder at the GDT in dollars and the DCA prices in euros. In reality the difference in price is much smaller. Expressed in euros, about €100 per tonne.
From the stable quotation for whole milk powder, traders conclude that China has not yet really returned to the market. In addition to milk powder prices, prices for butter and butter oil also remained virtually the same. Butter recorded a plus of 0,3%, butter oil a minus of 0,7%.
Cheddar makes a little music
Cheddar was the only product whose price really changed. Here the quotation rose by 4,9% to $5.487 per ton, or the equivalent of €4.862.
A total of 30.685 tons of product was sold, of which about 60% consisted of whole milk powder.