Sales on Global Dairy Trade lowest in 15 years

The second Global Dairy Trade of May is marked by small price increases, with the exception of cheddar and AMF. The traded volume falls further and comes out at the lowest level in fifteen years. The penultimate auctions were marked by a downward trend, but with an average price increase of 0.6% to $4,198 per ton the upward path has been found again. Mozzarella picks up The biggest gain is for mozzarella, with an increase of 2.9% to $4,127 per ton. Only European product from Arla and Solarec was traded. The increase is not unexpected, because on the physical market in Europe prices have been rising for several weeks already. Stocks are low, while demand for mozzarella increases in this period. Cheddar, the other type of cheese, actually shows a decline of 1.3% to $4,560 per ton. Only New Zealand product was traded here. Butter rises again The increase in butter of 2.5% to $5,674 per ton can be seen as a break in the trend, after three declines in a row. Presumably butter has reached bottom, because supply contracts further out in time show a premium. AMF falls by 1.6% to $6,344 per ton. Milk powders still gather some gains, although the increases are smaller than in previous auctions. Skimmed milk powder rises by 0.2% to $3,552 per ton, while whole milk powder increases by 1.2% to $3,772 per ton. Low volume The most striking thing is the low traded volume. The 12,972 tons that were sold is the lowest level since March 2013. This can be seen as a signal that underlying demand for dairy remains weak.