News dairy business
Butter Draws Attention on Flat Global Dairy Trade
The average price on the Global Dairy Trade remains at $3.479 per ton at the same level as the previous auction in June. This suggests that nothing exciting happened today, but nothing could be further from the truth.
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When we zoom in on the various dairy products, considerable movements are visible. The butter price is the most striking with an increase of 5,5% to $5,379 per tonne. This is the highest level in almost a year. The upward movement is also at odds with sentiment in Europe, where the fat market has recently felt somewhat weaker. It is possible that this will also give the European butter market a boost.
Minced cheddar
The plus in butter is offset by lower prices for skimmed milk powder and cheddar. Cheddar loses 3,3% to $4,533 per tonne. Here too, the GDT deviates from the European market, which has made gains in recent weeks. Skim milk powder drops 2,3% to $2.667 per tonne. This is in line with the weak picture on the European market. Whole milk powder makes a difference.
The volume traded during the last auction of the first half of this year may remain just above 20.000 tons, but the volume is nevertheless relatively low. This corresponds with the image of a market where the trading pace has been felt to be low for weeks.