During the latest Global Dairy Trade (GDT) event, marked as #350, the market witnessed a notable uptick, with the overall price index increasing by 0.5%. This rise occurred against a backdrop of the lowest volume traded since June of the previous year.
Expectations of weakened Whole Milk Powder (WMP) prices due to the recent decline in futures prices over the past two weeks were met as prices slid by US$74 per metric ton to US$3,388. Despite improved purchasing activity from China, which saw an uptick in tonnage sold (albeit against a seasonal decline in volumes), Middle Eastern buyers retreated, resulting in the lowest tonnage sold since July.
In contrast, Skim Milk Powder (SMP) prices experienced an upward trajectory, climbing by US$30 per metric ton to US$2,788. This movement was largely attributed to European Union (EU) prices playing catch-up against the substantial Oceania premium observed during the preceding event (#349).
Prices for Anhydrous Milk Fat (AMF) saw a notable surge, buoyed by robust demand from various regions, particularly Latin America, and maintaining a significant discount compared to butter prices. AMF prices soared by nearly 9% on average to US$6,552 per metric ton, with substantial gains in later deliveries contributing to a flattening of the forward price curve. Butter prices remained stable, averaging US$6,526 per metric ton.
Conversely, Cheddar prices experienced a substantial decline, plummeting by US$326 per metric ton to an average of US$4,143. This downward trend likely reflects the abundance of Oceania product in the market and continued weakness in the US market. Mozzarella, however, defied expectations by rebounding by US$200 per metric ton to US$3,960, contrary to the recent weaker trend observed in EU spot market quotations.
