The latest Global Dairy Trade has held steady on the previous auction, posting neither a rise nor a decline.
Overall product prices stood at 0% today, June 15, with the average price standing at US$2,339/MT.
Earlier this week, ASB Banks dairy futures market suggest that WMP prices may rise at this auction, however, they were down 4.5% on the last auction.
The main movers at today’s Global Dairy Trade were cheddar (up 6.9%) and anhydrous milk fat (AMF) (up 4.4%).
Skimmed milk powder (SMP) was up marginally by 1.5% on the previous auction.
- AMF index up 4.4%, average price US$3,619/MT
- Butter index up 5.3%, average price US$2,910/MT
- BMP index down 6.6%, average price US$1,695/MT
- Ched index up 6.9%, average price US$2,882/MT
- LAC index up 0.6%, average price US$754/MT
- RenCas index down 0.4%, average price US$5,116/MT
- SMP index up 1.5%, average price US$1,901/MT
- WMP index down 4.5%, average price US$2,118/MT
‘Milk demand expected to exceed milk supply in 2016’
Meanwhile, researchers and analysts with the International Farm Comparison Network (IFCN) have said that milk demand will exceed milk supply in 2016.
Milk demand growth in 2015 was estimated by the IFCN at a level of 1.8% to 2% and for 2016 it estimated milk demand growth at a level of 2%.
In market balance terms, researchers say that over the past two years milk supply has exceeded the demand and in turn, dairy stocks have been built.
Analysis of the world milk supply based on IFCN researchers’ estimates shows that milk supply will grow by 1.5% in 2016, which they say is substantially lower than 2015 (+1.8%) and 2014 (+3.2%).
Now, however, for 2016 IFCN estimates that on an annual basis milk demand will exceed milk supply.
This was not the case in the first five months of the year but it is expected to arise later in 2016, according to researchers.