Analysis dairy business
Index falls slightly on calm Global Dairy Trade
While the previous GDT auction still showed a slight increase in the index, the index fell slightly again in the most recent auction on 21 June. It was a calm auction with relatively little product. Barely 21.000 tons.
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The major products: whole milk powder and skimmed milk powder almost balanced each other in terms of price movements. The price of the average skimmed milk powder contract increased by 1% to US$4.276 per tonne (+$36), the price of the average whole milk powder contract decreased by 0,6% to US$4.125 per tonne (-$33).
European powder cheaper
In the case of skimmed milk powders, the European (Arla) product was considerably cheaper than the New Zealand one. European powder averaged $4.133 per tonne and comparable New Zealand product $4.345.
Butter is still considerably cheaper
The largest price movements were in smaller products. Butter rose in price by 2,4% to an average of $6.213 per tonne. This corresponds to a price in euros of €5.884. When you compare this with the DCA quotation of €7.150 last week, this amounts to a difference of €1.266 per tonne.
AMF, on the other hand, fell 4,7% in price to $5.913 per tonne.
Cheddar was the strongest decliner. The price of this fell by 9% to $4.875 per tonne.
The fact that it was a calm auction, towards the end of the production season in New Zealand and Australia, was also evident from the offer. Products such as whey powder, lactose and buttermilk powder were not listed at all.