The GDT index of dairy commodity prices rose by 3.4%, with all products showing a lift except whole milk powder (WMP) and rennet casein.
Skimmed milk powder was up 12.1% at $1,867/t and cheddar gained 7.8% at $2,669/t. WMP, however, lost 1.7% at $2,205/t.
Volumes traded were on the increase, with just over 24,000t sold. This remains well below 2014 levels, but is catching up with quantities sold at the beginning of the slump observed last year.
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There has been much discussion of dairy markets in the past few days, with the monthly report from the European Commission's Milk Market Observatory showing slower growth in global supply and signs of life in Chinese demand.
While the Commission has acknowledged Europe contributed most of the increased supply in the year since quotas were abolished, production here is no longer growing as fast and a similar trend is observed in the US. Milk supply is now falling back in the southern hemisphere.
A conference on dairy volatility in Dublin this week also heard that European production was forecast to slow down later this year, with intervention likely to absorb the remaining oversupply before markets rebalance themselves.
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The GDT index of dairy commodity prices rose by 3.4%, with all products showing a lift except whole milk powder (WMP) and rennet casein.
Skimmed milk powder was up 12.1% at $1,867/t and cheddar gained 7.8% at $2,669/t. WMP, however, lost 1.7% at $2,205/t.
Volumes traded were on the increase, with just over 24,000t sold. This remains well below 2014 levels, but is catching up with quantities sold at the beginning of the slump observed last year.
There has been much discussion of dairy markets in the past few days, with the monthly report from the European Commission's Milk Market Observatory showing slower growth in global supply and signs of life in Chinese demand.
While the Commission has acknowledged Europe contributed most of the increased supply in the year since quotas were abolished, production here is no longer growing as fast and a similar trend is observed in the US. Milk supply is now falling back in the southern hemisphere.
A conference on dairy volatility in Dublin this week also heard that European production was forecast to slow down later this year, with intervention likely to absorb the remaining oversupply before markets rebalance themselves.
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