Analysis Milk
Global Dairy Trade Down for Fifth Consecutive Year
The mood at the GDT auction remains subdued. The auction index fell below zero for the fifth consecutive week. Only one product recorded higher prices. While the total supply was slightly lower this time than at the previous auction, it seems premature to say that the supply peak has passed.
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In a rare moment of confusion, the GDT initially recorded a higher index, but this was due to a technical issue that was later resolved. The index fell by 1,4%, with the total supply coming to the auction clock being almost 1.400 tons lower than two weeks ago.
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With a total volume of 40.621 tons, there was still a large supply changing hands. The main products – whole and skimmed milk powders – continued to experience moderate price pressure. Slight price decreases were also recorded for butter and cheddar.
Cheddar, however, was once again the biggest bleeder. Its average sales price fell by 5,3% to €2.771 per tonne. This will further increase pressure on the market as a whole, particularly in Europe.
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AMF up
The price of AMF/butter oil was the only one to increase, by 1,5%. This has little significance for the European market so far, as a price of the equivalent of €6.039 per tonne is still quite low for that market.
It's noteworthy that European butter is sold significantly cheaper on the GDT than New Zealand butter. There's a price difference of just under €800 per tonne. New Zealand butter therefore no longer puts pressure on the European butter market. American butter, however, is still cheaper than EU butter.