Skimmed milk powder price continues its rise

The prices of skimmed milk powder have already risen sharply in recent weeks, but the cake is not finished yet. At the first Global Dairy Trade of September, another solid price increase is visible in an otherwise calm market. The average price increase is relatively limited at 0.9% to $3,910 per ton. With an increase of 5.3% to $3,695 per ton, skimmed milk powder is the positive exception. It is the fourth increase in a row, lifting the price to the highest level since the summer of 2022. American milk powder was traded at the highest price on the GDT. Product from Oceania was sold at the lowest price and Europe (Arla and Solarec) was in between. Whole milk powder is moving sideways with a decline of 0.1% to $3,585 per ton. This means that skimmed milk powder was traded at a higher price than powder from unskimmed milk. That is striking, but not entirely unique. In 2022 this also happened briefly and before that in 2014. It is a sign that the skimmed milk powder market is characterized by tightness, causing buyers to be willing to pay a premium. Cheddar down sharply In contrast to the increase in skimmed milk powder, cheddar shows a sharp decline of 6.6% to $3,503 per ton. This is the lowest level since September 2020. The price of mozzarella shows a flattening movement with an increase of 0.3% . Milk fat is moving calmly. With a decline of 0.8%, butter falls back to $5,028 per ton, while AMF falls 1.3% to $5,917 per ton.