Analysis milk
Global Dairy Trade is sending mixed signals.
This week's GDT auction is giving mixed signals. The index is higher again after a downward trend last time, although the average selling price has fallen. Milk fat continues to fall in price, mozzarella is more expensive again, and milk powders are also showing an increase despite a limited supply once again.
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The index shows a gain of 1,5%, while the average selling price fell (in dollars) by 0,39%. The volume sold remains very low at 13.743 tonnes.
The most unambiguous trend is the sustained price increase on the milk powder market, particularly for skimmed milk powder. This time, the price has risen by a few percent again. Apparently, there is high global demand for skimmed milk powder.
However, skimmed milk powder, primarily of New Zealand origin, with an average price of over €3.000 per ton, is neither the most expensive nor the cheapest product on the world market. Skimmed milk powder in the US is by far the most expensive, while European product remains the cheapest.
For cheese, the signals are mixed. Cheddar is falling in price, while mozzarella is rising. The price of butter is falling again, but remarkably, the price of butter oil is rising.
It is also striking that the New Zealand butter price is now nearly €900 per ton higher than the European one, whereas about a year ago the situation was almost completely the other way around.
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In the US, however, butter remains the cheapest of all.