Sharp decline in prices on Global Dairy Trade

The prices of dairy products on the Global Dairy Trade are under considerable pressure. During the first auction of July, the average decline of 4.9% is the largest in months. Especially milk powders are taking a hit. Whole milk powder falls by 4.4% to $3.425 per ton, while skimmed milk powder even loses 7% to $3.135 per ton. This is the third decline in a row, bringing the price back to the lowest point since mid-February and thus to before the war in Iran. Notably, especially the delivery contracts for the fourth quarter are under pressure. European skimmed milk powder was traded slightly cheaper than supply from New Zealand. The butter price is also falling sharply by 5% to $5.336 per ton. European butter was traded considerably cheaper than American product, with a price gap of almost $1.000 per ton. The cheeses show a mixed picture. Cheddar falls by 12.3% to $3.900 per ton and thus drops back to the lowest point since November 2023. Only product from New Zealand was sold. European mozzarella was traded at a higher price and rose by 3.8% to $3.897 per ton. Overall, the GDT shows a weak signal, which points to a subdued demand for dairy products. This is not confirmed by the traded volume, which rises to above 25.000 tons. Such an increase does fit the seasonal pattern of the GDT.