There was positive sentiment in dairy markets this week, with the price of all the key commodities rising on the European spot market.
Whole milk powder (WMP) bucked recent trends and increased in price by €75/t. Skim milk powder (SMP) increased by €35/t, while butter increased by €45/t and cheddar by €40/t.
These price increases follow on from a number of successive price cuts, both at the spot market in Europe and also at the Global Dairy Trade (GDT) auction in New Zealand.
There was no GDT auction this week or last, so all eyes will be on what happens next Tuesday.
The transparency of that auction helped New Zealand farmers when prices were on the up in 2021 and 2022, but it’s certainly not helping their cause now as prices are sliding and Fonterra is cutting the payout.
In Ireland, the spot market prices and the GDT auction result are only ever an indication of where prices are at.
Most Irish product is forward sold and locked into contracts. What the outlook was when these contracts were agreed is what will affect Irish milk price.
Perhaps one positive indicator is that US butter prices are buckling the international trend and have increased over recent weeks and are now about $1,000/t higher than Oceania or European prices.
However, the fact remains that Chinese imports of WMP are back 57% in the first five months of this year compared with last year.
Production of WMP in Europe has decreased by 2.7% with more milk diverted to cream and butter.
There was positive sentiment in dairy markets this week, with the price of all the key commodities rising on the European spot market.
Whole milk powder (WMP) bucked recent trends and increased in price by €75/t. Skim milk powder (SMP) increased by €35/t, while butter increased by €45/t and cheddar by €40/t.
These price increases follow on from a number of successive price cuts, both at the spot market in Europe and also at the Global Dairy Trade (GDT) auction in New Zealand.
There was no GDT auction this week or last, so all eyes will be on what happens next Tuesday.
The transparency of that auction helped New Zealand farmers when prices were on the up in 2021 and 2022, but it’s certainly not helping their cause now as prices are sliding and Fonterra is cutting the payout.
In Ireland, the spot market prices and the GDT auction result are only ever an indication of where prices are at.
Most Irish product is forward sold and locked into contracts. What the outlook was when these contracts were agreed is what will affect Irish milk price.
Perhaps one positive indicator is that US butter prices are buckling the international trend and have increased over recent weeks and are now about $1,000/t higher than Oceania or European prices.
However, the fact remains that Chinese imports of WMP are back 57% in the first five months of this year compared with last year.
Production of WMP in Europe has decreased by 2.7% with more milk diverted to cream and butter.
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