The Global Dairy Trade (GDT) price index appeared essentially unchanged overall, with the final results of Tuesday’s auction up just 0.1% on the last result.
The big talking point was the quantity of product sold. In total, there was over 40,500 tonnes (t) traded. This is high for the time of year and a huge increase of 13,000t on the auction two weeks previous.
The fact that prices remained steady despite the big lift in product traded indicates there is strong demand in the market and this is reason for optimism.
In the auction itself, skim and whole milk powder prices were both up, with increases of 1.2% and 0.2% respectively. Skim milk powder was sold at €2,827/t, with whole milk powder trading at €3,019/t.
Prices for milk fat were down and as a result butter suffered a price drop of 2.3% to €4,530/t.
Europe
European spot market prices are a little less positive, but there’s no significant changes.
Both butter and cheddar are back slightly at €25/t, while skim milk powder is up €30/t. Whole milk powder price remains unchanged at around €3,090/t.
Spot milk price in Europe is similar to last week, meaning there is still a fairly strong demand for milk.
Processors in Europe, such as FrieslandCampina, Arla, A-ware and DOC Kaas, have all increased milk prices for August supplies.
This is on the back of higher market prices and the continued drop in supply as a result of the drought in those countries.
Based on reports from European analysts, it seems the high cost of production and drought impact is finally slowing the growth in milk supply across the continent.
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