Friday 6 May
UFU MPI: 48.13ppl (was 48.73ppl) – GDT all product index fell eight-point-five percent on Tuesday. According to analysts, the fall was larger than expected but crucially in terms of outlook, it has not affected the Fonterra milk price assumptions, with its milk price forecast unchanged at $9.50 a kg of milk solids for 2021/22. Analysts expect this dip in Chinese demand to be temporary. Closer to home, despite the flush, prices remain at high levels. ZuivelNL/Dutch butter is trading at €7120/tonne and just shy of £6000 in the UK. SMP has also dipped to €4080/tonne and WMP at €5190/tonne. UK mild cheddar continues to rise though to £4650/tonne on the back huge demand, good exports and hardly any imports for January and February 2022.
Friday 22 April
UFU MPI: 48.73ppl (was 49.08ppl) – This week’s GDT auction for Fonterra slipped three-point-six percent, with whole milk powder (WMP) down four-point-four percent to $4,207/tonne and cheddar slipping three-point-nine percent at $6,185/tonne. The fall (and market sentiment) being attributed to the fact that China is in the throes of a renewed lockdown with COVID-19 numbers rising and this is impacting upon demand in their markets. In Europe, DDB/ZuivelNL, skimmed milk powder (food grade) recorded a €80/tonne fall, with feed grade SMP back €10/tonne and whey powder also falling by €10/tonne. Butter and WMP remain unchanged.
Friday 8 April
UFU MPI: 49.08ppl (was 47.10ppl): In the three weeks since the last MPI calculation, ZuivelNL/Dutch Dairy Board has seen butter increase €730/tonne to €7350, which is an all-time high and, in the UK, butter is now trading over £6000/tonne with quotes approaching £6300/tonne, and cream is now at £2.65 to £2.75. Powders also continue to increase to record levels, with skim milk powder (SMP) up to €4240/tonne for food grade. In the UK SMP is at £3500. According to the industry supplies are tight. Whole milk powder has ticked-up to €5190 and whey is €1460/tonne.
Friday 18 March 2022
UFU MPI: 47.10ppl (up from 44.96ppl): DDB/ZuivelNL recorded its second largest rise for butter this week, rising by €420/tonne to €6620, the highest price since August 2017. There were also significant increases across other products with new record prices being reached; whole milk powder up €200/tonne to €5050, skimmed milk powder (food grade) up €140/tonne and whey powder up €30/tonne to €1400. Elsewhere GDT in New Zealand saw its dairy index slip nought-point-nine percent to $5039, only the second fall since August 2021.
