The most recent Global Dairy Trade (GDT) auction was up another 1.4% this week. The result underpins a rising market, despite good flows of milk at this time of the year from New Zealand.
Since mid-August, the GDT results have been steady or increasing. The auction two weeks ago was up 1.9%. Cumulatively since mid-August, the GDT results are up over 15%.
Whole milk powder (WMP), the most important product at the auction, was up 0.6% to reach over US$4,008/t. Butter was up over 4.6% to hit over $5,700/t.
WMP prices on the European milk market observatory show they are heading for €4,000/t, up between 45% and 50% on the same time last year when they were trending close to €2,700/t.
Cheddar prices from the EU MMO internal market summary show prices are heading over €3,300/t for the last week in November. Butter on EU dairy commodity charts is 50% ahead of the same time last year in terms of price.
This time last year, it was heading for €3,500/t and now it’s heading for €5,250/t. The move is significant and why milk prices at farm level are 5c to 6c per litre ahead of the same time last year. Skim milk powder is 41% ahead.
Global milk supply fell for the second consecutive month in November. Output remains positive on a year-to-date basis, but supply was weaker in most major producing regions.
Supply slowdown has been quicker than expected with rising input costs a major factor, meaning global supply will be flat to slightly weaker in the second half of the year (2021).
The most recent Global Dairy Trade (GDT) auction was up another 1.4% this week. The result underpins a rising market, despite good flows of milk at this time of the year from New Zealand.
Since mid-August, the GDT results have been steady or increasing. The auction two weeks ago was up 1.9%. Cumulatively since mid-August, the GDT results are up over 15%.
Whole milk powder (WMP), the most important product at the auction, was up 0.6% to reach over US$4,008/t. Butter was up over 4.6% to hit over $5,700/t.
WMP prices on the European milk market observatory show they are heading for €4,000/t, up between 45% and 50% on the same time last year when they were trending close to €2,700/t.
Cheddar prices from the EU MMO internal market summary show prices are heading over €3,300/t for the last week in November. Butter on EU dairy commodity charts is 50% ahead of the same time last year in terms of price.
This time last year, it was heading for €3,500/t and now it’s heading for €5,250/t. The move is significant and why milk prices at farm level are 5c to 6c per litre ahead of the same time last year. Skim milk powder is 41% ahead.
Global milk supply fell for the second consecutive month in November. Output remains positive on a year-to-date basis, but supply was weaker in most major producing regions.
Supply slowdown has been quicker than expected with rising input costs a major factor, meaning global supply will be flat to slightly weaker in the second half of the year (2021).
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