Fats continue to rise at the latest GDT

Published 22 September 16

Butter and milk fat prices continued to climb at the latest Global Dairy Trade (GDT) Event on 20 September, helping to lift the overall Price Index up by 1.7%. Fat prices have risen sharply since July but the rise in powder prices has been more modest over the last few months, despite the SMP price increasing this week.

Butter prices are now around the level recorded three years ago and AMF (anhydrous milk fat) prices are following a similar trend. WMP and SMP prices, on the other hand, are currently sitting at about half the values recorded in September 2013.

Powder prices are being held back by significant stock levels, including SMP sold into the EU’s intervention scheme. Total European SMP stocks are estimated at around 500k tonnes in total, according to the European Dairy Association. For context, this is roughly double the volume of SMP China imported during its peak powder buying year in 2014 and only includes stock held within Europe.

GDT 22Sep16