The Global Dairy Trade (GDT) index was up a significant 3% at the most recent auction.
While fat-based products, butter and anhydrous milk fat were down, powders continued their recent positive run.
Skim milk powder (SMP) and whole milk powder (WMP) were up 3.1% and 5.9% respectively. SMP is now trading at €3,666/tonne (t), with WMP at €3,541/t. Cheddar also had a positive week, up 8.6% to €3,540/t.
European commodity prices painted a slightly different picture, with SMP falling marginally for the first time in over six weeks. Cheddar prices increased, WMP remained steady and butter rose by €150/t.
Europe
Looking across Europe, the indicators for future milk prices are mixed. Arla, a major player in Denmark, the UK, Netherlands and Belgium, has dropped its December milk price by approximately 0.5c/l.
Despite the reduction, the price remains almost 3c/l ahead of what Irish co-ops are paying for September milk.
FrieslandCampina has gone in the opposite direction, increasing December prices by 1.5c/l to almost 42c/l at Irish constituents, still behind Arla.
Despite these contrasting signals, both processors are paying around 2c/l more than current Irish milk prices. Farmers will be hoping this gap closes by December.
European milk production is also starting to slip. While seasonal declines are normal, weekly collections in France and Germany are falling faster than last year.
Meanwhile, El Niño is beginning to affect New Zealand, with the North Island 250mm behind annual rainfall, while the South Island has above-average rainfall.
