Futures markets point to a strong rise in today’s Global Dairy Trade
Dairy prices at today’s Global Dairy Trade auction could rise by as much as 10%, according to New Zealand Bank ASB.
Analysts at the bank have suggested that whole milk powder (WMP) prices could rise by between 5-7%.
They have said that the only way is up and that the futures market points to a very strong Global Dairy Trade auction today.
There has been no significant drop or increase in dairy product prices over the last three auctions, with the last major increase in prices on June 1, where prices rose 3.4%.
At the last Global Dairy Trade auction, dairy prices held steady with no change in overall prices.
The average price paid for dairy products was US$2,336/MT with 31,348t of product traded, at the last auction.
Whole milk powder (WMP) posted the strongest increase in prices at the Global Dairy Trade, with a 1.9% increase in prices. Rennet Casein (RenCas) posted the next highest increase (0.4%) followed by anhydrous milk fat (AMF) (0.2%).
Skimmed milk powder (SMP) prices were down 1.1% while butter was also down 5.0%.
24,228t of SMP offered to intervention in three weeks after ceiling increases
Meanwhile, in Europe, some 24,228t of skimmed milk powder (SMP) has been offered to the public intervention system in the three weeks after the ceiling of the measure increased to 350,000t, figures from the Milk Market Observatory (MMO) show.
For the week ending July 24, some 6,250t of SMP was offered to the measure by Member States. Of this figure, Ireland contributed 430t.
In total, some 29,159t of SMP has been deposited by Ireland to intervention this year.
France continues to be the Member State to offer the most product to the measure, with 1,988t of SMP offered last week. To date this year, France has 48,030t in the measure.
Some 242,228t of SMP has been offered to the measure to date by Member States.
In June, the levels of SMP in the measure breached the EU’s ceiling of 218,000t and then product was sold into the measure via a tendering process, before new rules on the intervention ceiling came into effect.