Dairy markets were relatively stable this week, with no major corrections either up or down.
Tuesday’s Global Dairy Trade (GDT) pulse auction saw prices for whole milk powder (WMP) go up by €55/t, while skim milk powder (SMP) went up by €76/t.
There was a lot less positivity in the butter market, with prices down by €402/t at the auction, albeit at low volumes.
At €5,093/t at the pulse auction, that’s €270/t behind the latest price for butter at the main auction, which took place last week.
Reports across Europe are of plentiful butter stocks, which is not good as we head into the peak butter-making season in Ireland.
Meanwhile, in the European spot market, butter prices were more stable, with no big changes. There was no change in the price of powders on the spot market, although cheese prices fell by €50/t, somewhat offset by butter increasing in price by €75/t. However, as mentioned, the mood music on butter is not good.
Speaking to some of the co-op CEOs this week, they expect to see milk prices increase towards the back end of the year.
The futures market for butter is definitely hinting at a price increase, with October and November butter over €700/t higher than the current price. However, the futures don’t have butter breaking the €5,000/t mark until the middle of next year.
However, all that can change based on supply and demand, but, at the moment, the market seems to be pricing in the likelihood that supply is going to remain high for the next six months at least.
The supply figures from the US for March will be interesting to see – supplies were up over 3% in February.
Dairy markets were relatively stable this week, with no major corrections either up or down.
Tuesday’s Global Dairy Trade (GDT) pulse auction saw prices for whole milk powder (WMP) go up by €55/t, while skim milk powder (SMP) went up by €76/t.
There was a lot less positivity in the butter market, with prices down by €402/t at the auction, albeit at low volumes.
At €5,093/t at the pulse auction, that’s €270/t behind the latest price for butter at the main auction, which took place last week.
Reports across Europe are of plentiful butter stocks, which is not good as we head into the peak butter-making season in Ireland.
Meanwhile, in the European spot market, butter prices were more stable, with no big changes. There was no change in the price of powders on the spot market, although cheese prices fell by €50/t, somewhat offset by butter increasing in price by €75/t. However, as mentioned, the mood music on butter is not good.
Speaking to some of the co-op CEOs this week, they expect to see milk prices increase towards the back end of the year.
The futures market for butter is definitely hinting at a price increase, with October and November butter over €700/t higher than the current price. However, the futures don’t have butter breaking the €5,000/t mark until the middle of next year.
However, all that can change based on supply and demand, but, at the moment, the market seems to be pricing in the likelihood that supply is going to remain high for the next six months at least.
The supply figures from the US for March will be interesting to see – supplies were up over 3% in February.
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