Analysis dairy business
Milk powder stands out on higher Global Dairy Trade
The first Global Dairy Trade of October is almost a repeat of the last auction in September. The average price increase is slightly lower than last time. Once again, cheddar is the dissonance.
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With an increase of 4,4%, the average price rises to $3.104 per tonne. Milk powder prices stand out with an above-average price increase. Skim milk powder rises slightly above $2.500 per tonne, the highest level since mid-July. European product offered by the Belgian Solarec was sold as the most expensive. Whole milk powder also traded considerably higher, but still remained just below the $3.000 per tonne mark.
Cheddar under pressure
It is striking that cheddar does not contribute to the profit. In fact, a drop of 4,8% is quite large. The price drop is not completely unexpected, because the global cheddar market is suffering from cheap European product. Providers from Ireland in particular offer large volumes. The decline appears to have created a better balance between world market prices.
In general, it is expected that the higher Global Dairy Trade can further contribute to the recovery of the dairy market in Europe. The troubled powder market in particular seems to be able to make gains.