Friday 20 May
UFU MPI: 48.33ppl (up from 48.13ppl): Despite the GDT All Product Index in New Zealand slipping two-point-eight percent to $4432, Fonterra are "optimistic" in its medium to long-term outlook. The immediate term is more problematic for Fonterra with Covid/China issues continuing. Despite this, dairy demand remains strong and milk supplies constrained globally. Dutch commodity markets saw skimmed and whey powder dropping back slightly in the last fortnight. Dutch butter is trading at €7050/tonne, £5930/tonne in the UK, which is a record price for this time of year. The price of cheddar has moved up again, mild is now at £4700, mature at £4950 and mozzarella is at £4550/tonne.
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.
