Strong increase in dairy prices at latest Global Dairy Trade auction

Dairy product prices rose 6.6% at today’s Global Dairy Trade auction, after several weeks of flat dairy prices.

The average price paid for dairy product at the event stood at US$2,436/MT with 34,928t of product traded.

Today’s auction saw whole milk powder (WMP) up 9.9% while rennet casein (RenCas) was the main mover, posting a 16.3% increase.

Skimmed milk powder (SMP) posted a small increase of 2.1% and butter prices were up by 6.6%. The only negative price was cheddar, which was down 0.8%.

New Zealand bank ASB had predicted that today’s Global Dairy Trade would reflect dairy futures markets and post a strong increase in prices and that WMP could rise by between 5-7% (which it surpassed).

Key Results

  • AMF index up 4.7%, average price US$3,797/MT.
  • Butter index up 6.6%, average price US$2,871/MT.
  • BMP index up 7.7%, average price US$1,661/MT.
  • Ched index down 0.8%, average price US$2,889/MT.
  • LAC index up 3.7%, average price US$741/MT.
  • RenCas index up 16.3%, average price US$6,161/MT.
  • SMP index up 2.1%, average price US$1,965/MT.
  • WMP index up 9.9%, average price US$2,265/MT.

GDT Price index

The three previous Global Dairy Trade auctions all held steady, with two auctions posting no increases or decreases in prices, while the other was down marginally at 0.4%.

EU milk production continues to slow down in May

Meanwhile, the latest figures from the Milk Market Observatory (MMO) show that EU milk production is continuing to slow down, with production between January and May is up 4.5% this year.

Comparing production in the first four months of the year to the first five, this is a decrease of 1.1%.

While the figures from the MMO show that milk production in the EU is starting to stall, production in Ireland, the Netherlands and Belgium continues to increase – albeit at a slower rate than it was increasing at this time last year.

In Ireland, milk volumes going to the processors and creameries in May increased by 4.9% with milk intake estimated at 918.0m litres.

Between January and May Irish milk production increased by 11.1% compared the corresponding period last year.

Meanwhile, in the Netherlands, milk production between January and May this year increased by 14.3% compared to the same period last year. In Belgium, milk production increased by approximately 7.5% for the January to May period.