Thursday, June 21, 2018
 Dairy Product Prices Continue To Rise  

Prices in the latest Global Dairy Trade (GDT) auction, the tenth sale in 2017, rose 3.2% with an average selling price of $3,313 per ton. This was the fifth successive gain with prices having risen just over 14% in the past two months.


Whole Milk Powder prices rose 1.3% and Skim Milk Powder prices rose 1.0% from the previous auction.


The solid price gains over the past two months will help support sentiment, especially with evidence of stronger demand. Prices have also edged just above the December 2016 peak to the highest level for 35 months and a hold above this level at the next auction would further boost confidence.


Rabobank analysts still expect milk pay-outs to be near or just above $6.00/Kg for the 2017/18 season from $6.00/kg this year. In the bank’s view, prices are likely to be capped around current levels given stabilization in global supply while there were some doubts surrounding growth in Chinese demand even though low inventory levels suggest that there will be an increase in short-term shipments.


A total of 21,236 tons were sold at the May 16th auction, falling 6.2 percent from the previous one. The auctions are held twice a month, with the next one scheduled for June 6.

 

Source: GlobalDairyTrade

 


Posted on Friday, May 19, 2017 (Archive on Friday, May 26, 2017)
Posted by bholcomb@adpi.org  Contributed by bholcomb@adpi.org
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