The potential for improved milk prices in the coming months was further strengthened with positive price moves for several key commodities at this week’s GDT auction.

The overall index price rose 1.9% to US $4,660/t, which converts to an approximate milk price of close to 29p/l after allowing for processing costs and exchange rate.

Butter prices rose by 2.4% to $5,787/t and are now almost $300/t higher than the corresponding auction in mid-May last year.

Cheddar prices rose by 4.4% with skim milk powder up 3%. Whole milk powder was more sluggish with a 0.2% increase to $3,226/t.

Dutch prices

The upward price trends at this week’s GDT were replicated at the weekly Dutch Dairy Board auction where butter rose €60/t to €5,900. Dutch butter prices are now more than €1,000/t higher than May 2017.

Skim milk powder rose by €20/t to €1,490 with whole milk powder rising by €50 to €2,770/t.

UK prices

In the UK, improving markets saw butter prices rise to £4,660/t for April, an increase of £935/t on the same month last year. Skim milk powders are slowly improving, but from a very low base.