Analysis dairy market
Global Dairy Trade breaks down trend
The better trend in the dairy market was also confirmed today (June 7) by the Global Dairy Trade. After a few auctions with significant price drops in a row, the quotations are now predominantly green. The biggest riser is butter. Cheddar is the negative exception to the rule.
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Butter prices rise by 5,6% to $6.068 per tonne. AMF also rises, by 2,7% to $6.201. It is the first time since March that the milk fat has had a positive result on the GDT. Butter prices in Europe were also recently in a lower phase, but due to tight supplies, prices are now picking up again.
The GDT quotation of skimmed milk powder also reflects the improved sentiment on the global dairy market and rises by 3% to $4.240 per tonne. Delivery contracts for further afield are also trading well above the $4.000 level. This can be seen as a strong signal. Cheddar prices are declining, by 3,6% to $5.365 per tonne. The reason for this is difficult to determine. In Europe, cheddar prices show a stable to slightly increasing trend, with the cheese market as a whole feeling solid.
Confirmation of rising trend
Today's GDT was eagerly awaited in Europe. A rise in prices should confirm the improving sentiment. This now appears to be the case, opening the way for further price increases. The traded volume is relatively low at 21.435 tons. However, this can be seen as a logical consequence of the declining seasonal milk production in New Zealand, the home platform of the GDT.