Global Dairy Trade Event Fuels Optimism in Dairy Market
Source: The DairyNews
The 357th Global Dairy Trade (GDT) event showed positive momentum with notable increases in milk powders and cheese, contributing to gains in Class III and IV futures. Despite no changes in the spot cheese trade, Class III futures continued their upward trajectory, with many contracts hitting new highs. Additionally, butter prices sustained their rally, undeterred by last month's seemingly bearish Cold Storage report.
At the latest GDT auction, skim milk powder (SMP) prices rose by 3.5% to $1.23 per pound, while whole milk powder (WMP) saw a 2.1% increase to $1.58 per pound. These increments helped maintain the overall index in positive territory, with a 1.7% lift compared to the previous auction. However, the auction volume decreased by 5.0%, with the primary buyers hailing from Southeast Asia & Oceania (33.0%) and North Asia (32.0%).
In the U.S., the Chicago Mercantile Exchange (CME) nonfat dry milk (NDM) market reacted to the GDT results, approaching the $1.20-per-pound mark and settling at $1.1900, up $0.0225. The trading session was active, with 17 loads exchanged. The CME butter market also recorded a new high for 2024, reaching $3.1625 per pound, marking a gain of $0.0425.
These upward movements in NDM and butter significantly influenced Class IV futures, which saw increases ranging from 50 to 72 cents through the remainder of the year. The third quarter futures for Class IV surged to $22.20 per hundredweight, an increase of 70 cents, while Q3 Class III futures climbed to $20.95 per hundredweight, adding 29 cents.
In other news, the Mexican peso experienced a weakening following the election of a new president. This development could potentially impact Mexico's import activities, though it remains to be seen if the effect will be long-term or merely transient.
The dairy market continues to show resilience and growth, fueled by strong demand and strategic global trading dynamics. As we move forward, the sector will closely monitor geopolitical shifts and economic factors that could influence global dairy trade and pricing.
In the U.S., the Chicago Mercantile Exchange (CME) nonfat dry milk (NDM) market reacted to the GDT results, approaching the $1.20-per-pound mark and settling at $1.1900, up $0.0225. The trading session was active, with 17 loads exchanged. The CME butter market also recorded a new high for 2024, reaching $3.1625 per pound, marking a gain of $0.0425.
These upward movements in NDM and butter significantly influenced Class IV futures, which saw increases ranging from 50 to 72 cents through the remainder of the year. The third quarter futures for Class IV surged to $22.20 per hundredweight, an increase of 70 cents, while Q3 Class III futures climbed to $20.95 per hundredweight, adding 29 cents.
In other news, the Mexican peso experienced a weakening following the election of a new president. This development could potentially impact Mexico's import activities, though it remains to be seen if the effect will be long-term or merely transient.
The dairy market continues to show resilience and growth, fueled by strong demand and strategic global trading dynamics. As we move forward, the sector will closely monitor geopolitical shifts and economic factors that could influence global dairy trade and pricing.
