Dairy markets have stabilised somewhat this week, with much smaller drops for key commodities compared with recent weeks.
It’s an opportunity for the whole sector to breathe a sigh of relief that the carnage experienced in butter markets in particular has eased.
That’s not to suggest that things are good, as almost all categories of dairy stock have dropped in price over the last week, it’s just that the price drop is lower than in recent weeks, but much higher than recent months.
Butter prices fell by €55/t to reach €5,385/t, which is the lowest price for butter since early 2024.
Butter was the star performer of the last 18 months, reaching heights never seen before, so the fact that it has dropped is no great surprise, but the manner in which it fell has definitely caught the market by surprise.
Some analysts have suggested that the price drop has brought more buyers back into the market. An increased demand will possibly be one positive side effect of the price drop.
There is no Global Dairy Trade (GDT) auction this week, but in the GDT pulse auction, whole milk powder (WMP) prices held relatively stable at €3,221/t. This is similar to the last three weeks, but is still down over €200/t on where it was for most of the summer.
European WMP is still trading at a significant premium to that pulse price, at €3,700/t while skim milk powder (SMP), the poor relation in the powder market, is trading in Europe at €2,155/t. This is back €20/t on last week.
Dairy markets have stabilised somewhat this week, with much smaller drops for key commodities compared with recent weeks.
It’s an opportunity for the whole sector to breathe a sigh of relief that the carnage experienced in butter markets in particular has eased.
That’s not to suggest that things are good, as almost all categories of dairy stock have dropped in price over the last week, it’s just that the price drop is lower than in recent weeks, but much higher than recent months.
Butter prices fell by €55/t to reach €5,385/t, which is the lowest price for butter since early 2024.
Butter was the star performer of the last 18 months, reaching heights never seen before, so the fact that it has dropped is no great surprise, but the manner in which it fell has definitely caught the market by surprise.
Some analysts have suggested that the price drop has brought more buyers back into the market. An increased demand will possibly be one positive side effect of the price drop.
There is no Global Dairy Trade (GDT) auction this week, but in the GDT pulse auction, whole milk powder (WMP) prices held relatively stable at €3,221/t. This is similar to the last three weeks, but is still down over €200/t on where it was for most of the summer.
European WMP is still trading at a significant premium to that pulse price, at €3,700/t while skim milk powder (SMP), the poor relation in the powder market, is trading in Europe at €2,155/t. This is back €20/t on last week.
SHARING OPTIONS