China imported just over 195,000t of dairy commodities for May, which was a slight fall (-1%) compared with the same month last year. The decline in total imports was driven by a sharp fall in the quantity of whole milk powder (WMP) imported for May.

Chinese dairy buyers imported close to 27,000t of WMP for May, which was a near 20% decline year on year. Chinese WMP imports in the year to date are now 5% behind last year.

However, strong demand in China for other dairy commodities continues apace. Infant formula demand continues to show double-digit import growth month after month.

For May, infant formula import volumes were up close to 40% to 23,320t. This brings year-to-date imports to just under 100,000t, which is 26% ahead of last year.

There is also strong demand for cheese this year, with May imports up almost 50% to just under 10,200t.

China’s butter imports for May surged 80% year on year to 7,820t.

Closer to home, Europe’s butter market continues to heat up. Spot prices for butter in the last week have now moved above €6,000/t, with German wholesale prices agreed for €6,100/t.

Judging by the European futures market for butter (EEX), there is an expectation within the market that prices could move even higher in the third quarter of the year, with contracts completed for €6,200/t.