The big news this week was the disappointing result from the Global Dairy Trade (GDT) auction, which saw the index decline by 4.3% compared with the last auction.
Within this, there was a sharp decline for powders, which represents over three-quarters of all product sold at the auction.
Whole milk powder (WMP) fell by 5.3%, while skim milk powder (SMP) fell further, declining by 5.8%.
There were further price drops for butter, which fell by 2.5%, and anhydrous milk fat (AMF), which fell by 2.6%.
The amount of product offered at the auction increased substantially on the previous auction and at 41,465t is one of the biggest auctions in a while. This obviously wasn’t a help for prices, as buyers were scarce.
The only real chink of light from the auction is that cheddar cheese prices increased by 3.6% compared with the last auction. However, at €4,020/t, the GDT price for cheddar is still back from the most recent peak of €4,873/t achieved at the early May auction.
There could be an element of buyers taking a step back from the market at present to see where things are going to go with prices.
The sentiment is negative and this is being fuelled by much higher supplies in New Zealand, with the latest data showing milk solids are up 2.2% for July compared to July 2024.
However, July is not a big month for milk in New Zealand, accounting for only 1.4% of total annual supplies. The other big thing is the US milk supply outlook. Supplies there are up 3.5% in the major milk producing states.
The big news this week was the disappointing result from the Global Dairy Trade (GDT) auction, which saw the index decline by 4.3% compared with the last auction.
Within this, there was a sharp decline for powders, which represents over three-quarters of all product sold at the auction.
Whole milk powder (WMP) fell by 5.3%, while skim milk powder (SMP) fell further, declining by 5.8%.
There were further price drops for butter, which fell by 2.5%, and anhydrous milk fat (AMF), which fell by 2.6%.
The amount of product offered at the auction increased substantially on the previous auction and at 41,465t is one of the biggest auctions in a while. This obviously wasn’t a help for prices, as buyers were scarce.
The only real chink of light from the auction is that cheddar cheese prices increased by 3.6% compared with the last auction. However, at €4,020/t, the GDT price for cheddar is still back from the most recent peak of €4,873/t achieved at the early May auction.
There could be an element of buyers taking a step back from the market at present to see where things are going to go with prices.
The sentiment is negative and this is being fuelled by much higher supplies in New Zealand, with the latest data showing milk solids are up 2.2% for July compared to July 2024.
However, July is not a big month for milk in New Zealand, accounting for only 1.4% of total annual supplies. The other big thing is the US milk supply outlook. Supplies there are up 3.5% in the major milk producing states.
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