The Global Dairy Trade (GDT) took a bit of a wallop this week, with the index dropping by 2.8%, which was higher than expected. The main reductions was for powders, with whole milk powder (WMP) dropping by 2.9% and skim milk powder (SMP) dropping by the same.
The Global Dairy Trade (GDT) took a bit of a wallop this week, with the index dropping by 2.8%, which was higher than expected.
The main reductions was for powders, with whole milk powder (WMP) dropping by 2.9% and skim milk powder (SMP) dropping by the same.
Both anhydrous milk fat (AMF) and butter fell also by 3.8% and 0.6% respectively.
It’s the first significant drop in the GDT for months, with the last time the index falling significantly being in July. Since then, it has been rising steadily, with just one or two small reductions.
The overall index remains in a very good place, with prices historically high relative to 2023 and the pre-pandemic years.
In Europe, prices seemed to settle this week, particularly for butter, with the market nudging up by €55/t. When considering the decline in prices in recent weeks this is a really good result.
Average butter prices are now €7,185/t and while significantly lower than they were three weeks ago, it’s a good price if it extends into the new year and beyond.
WMP and cheddar are much more stable in Europe, with WMP up €10/t and cheddar down €10/t. SMP has been under a bit more pressure in the European market and at the GDT, as it fell by €30/t this week in Europe and is currently trading at €76/t behind the GDT price, indicating limited appetite in Europe for skim.
As dairy markets wind down for Christmas, next year’s outlook is less certain, but futures are predicting prices to come down for almost all categories.
This is a subscriber-only article
SHARING OPTIONS: