Analysis dairy business
Global Dairy Trade takes a big step up
The dairy market has been in a downward trend for months, but the auction results at today's (Feb. 7) Global Dairy Trade now paint a distinctly different picture. With the exception of skimmed milk powder, prices are rising, with butter standing out.
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With an average price increase of 3,2% to $3.456 per tonne, the Global Dairy Trade is clearly on the rise again. The butter price even shows an increase of more than 6,5% to $4.745 per tonne. This is the highest level since the end of November. Cheddar and whole milk powder are also clearly popular. Only the quotation of skimmed milk powder remains at the same level.
The revival did not come completely out of the blue. In Europe, the price of butter has been on an upward trend for two weeks and cheese prices are also cautiously rising again. The Global Dairy Trade confirms that the improved sentiment is not just limited to Europe, but is global. The dairy market has probably gone too negative in recent weeks and is now following a recovery. The increasing demand is also reflected in the traded volume, which rises to 32.582 tonnes.
At the same time, one swallow does not make a summer, because the milk supply in Europe is oppressively large and the American supply is also showing growth figures.