The Global Dairy Trade (GDT) auction result was down 0.7% this week to average $4,162, which more or less continues the steady trend in dairy commodities we saw for the last three auctions.
Volume sold at the auction was small given the time of year and season in New Zealand.
Butter was back 12% to $5,035/t and whole milk powder (WMP) was in fact up 0.7% to $4,115/t, which was a very positive result, as this is the key product traded through the auction platform.
The general trend of stability on dairy commodities holds again for this week.
The butter and skim mix is making more money and is slightly less costly to make than cheese, so those processors that have that option are winning.
On European markets, butter is making about €4,000/t and that, combined with a better skim price, is making the pair attractive.
Skim is making just shy of the €2,500/t mark, which is almost €1,000/t better than where it was in 2018 when butter hit the roof at €6,000/t.
Rain has helped growth rate and relieved drought stress on very dry farms in Ireland and the UK.
Very dry weather was limiting the EU spring flush of milk to some extent and some were beginning to ask questions about drought and the impact it might have on milk supply.
Eastern Europe has had exceptionally cold weather by all accounts, so supplies are tight and demand strong in those regions.