News dairy business
Global Dairy Trade uses a different approach
During the previous editions of the Global Dairy Trade (GDT), increasing prices were visible, but the sentiment during the first auction in March was considerably more negative. Milk powders in particular are in decline.
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The average price index falls by 2,3%, which is the biggest loss since early November. With a decrease of 5,2%, skimmed milk powder is the weakest product. The European milk powder market has been negative for some time and this price swing on the GDT could provide a new downward stimulus. Only a small premium will be paid for the delivery contracts later this year, which underlines the weak market sentiment.
Whole milk powder and butter
Whole milk powder is also under pressure with a decrease of almost 3%. This is not good news for Fonterra's milk price, which is largely based on the valuation of this product. The butter price is down 1%. This looks more like a flattening market than a decline. Especially because AMF is moving slightly upwards.
Cheddar in the elevator
The GDT is not purely negative, however. Cheddar, for example, records a pretty solid plus of 4%. This could stimulate the somewhat lackluster European dairy market, although mozzarella is slightly declining.
At 21.235 tons, the trading volume is relatively low. This may have somewhat increased the downward pressure in milk powder.