News dairy prices
Global Dairy Trade continues to spiral down
The Global Dairy Trade remains in a downward spiral, although the price pressure is less than during the previous auction. The largest decrease is attributable to whole milk powder, butter and skimmed milk powder fall less quickly.
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The average price drops by 2,9% to $4.432 per tonne. This is already the fifth decline in a row. Since mid-March, the Global Dairy Trade has shown a downward trend, which is also noticeable here in Europe.
With a decline of -4,9% to $3.934 per tonne, whole milk powder recorded the largest decline. This is a setback for dairy farmers in New Zealand. Whole milk powder carries the most weight in the valuation of milk prices. Based on the previous decline, dairy cooperative Fonterra has already adjusted the expected price downwards.
Starting points for a more stable trend
Butter prices fell 1% to $5.750 per tonne, while skimmed milk powder fell 0,6% to $4.116 per tonne. These modest declines can be seen as starting points for more stable prices. With a decline of 0,1%, cheddar has already more or less reached the stable line.
What has mainly bothered the dairy market in recent weeks is a lack of demand. Chinese purchasing interest in particular is missed, something that determines market sentiment. Because supplies are tight worldwide and milk supplies are disappointing in many important production regions, the market can rely on a fairly solid foundation.