The big news this week is the positive Global Dairy Trade (GDT) auction result, which saw the index increase by 1.5%, the first increase since March. The index is back now to where it was in February.
The big stand-out performers were once again in powders, with whole milk powder (WMP) up by 2.2% and skim milk powder (SMP) up by 3%.
There was gains also for anhydrous milk fat (up 1.1%) and butter milk powder (up 9%).
Butter took a hit again at this auction, declining in price by 2.6% to reach €4,722/t.
Incidentally, the European spot price for butter has fallen also this week and settled at €3,700/t.
That’s not a typo, there is a clear €1,000/t in the difference in price between European butter spot price and the average of the GDT auction price.
On a price-per-litre-of-milk basis, that’s a difference of about 5c/l between the two markets, which is extraordinary really and a total reversal of where the market was at this time last year, when European butter was making thousands per tonne more than the GDT butter.
Staying in Europe, it wasn’t a great week, with drops in price for most commodity classes, with the exception of SMP, which increased in price again this week by €125/t to €2,900/t. This price is still €100/t behind the GDT price.
Elsewhere, Ornua released the PPI for April milk, which showed a large enough lift compared to March.
When the Ornua value payment is factored in, the price per litre excluding VAT has gone up from 35.72c/l in March to 38.96c/l in April.
These increases obviously reflect the improved market returns, particularly for skim products.
The big news this week is the positive Global Dairy Trade (GDT) auction result, which saw the index increase by 1.5%, the first increase since March. The index is back now to where it was in February.
The big stand-out performers were once again in powders, with whole milk powder (WMP) up by 2.2% and skim milk powder (SMP) up by 3%.
There was gains also for anhydrous milk fat (up 1.1%) and butter milk powder (up 9%).
Butter took a hit again at this auction, declining in price by 2.6% to reach €4,722/t.
Incidentally, the European spot price for butter has fallen also this week and settled at €3,700/t.
That’s not a typo, there is a clear €1,000/t in the difference in price between European butter spot price and the average of the GDT auction price.
On a price-per-litre-of-milk basis, that’s a difference of about 5c/l between the two markets, which is extraordinary really and a total reversal of where the market was at this time last year, when European butter was making thousands per tonne more than the GDT butter.
Staying in Europe, it wasn’t a great week, with drops in price for most commodity classes, with the exception of SMP, which increased in price again this week by €125/t to €2,900/t. This price is still €100/t behind the GDT price.
Elsewhere, Ornua released the PPI for April milk, which showed a large enough lift compared to March.
When the Ornua value payment is factored in, the price per litre excluding VAT has gone up from 35.72c/l in March to 38.96c/l in April.
These increases obviously reflect the improved market returns, particularly for skim products.
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