US – Milk powder values took a beating yesterday in both global and US markets as the Global Dairy Trade (GDT) Index slipped a further 8.9 per cent.
This is the GDT’s fourth consecutive and biggest drop this year and brought skimmed milk powder and whole milk powder down 9.6 and 8.4 per cent respectively.
Yesterday’s results represent the biggest SMP loss reported by the auction for almost a year, with rennet casein the only climber - up 5.5 per cent.
Chicago’s spot floor followed suit with reports that grade A Non-fat Dry Milk concluded Tuesday’s trading 3.25 cents lower at $1.9975.
Before the price drop NDM had not been below $2/pound since late November last year, according to Wisconsin University dairy markets data.
Dry milk futures settled lower at the Chicago Mercantile Exchange with losses of 2.5 cents or more from May to September.
Four cent losses were reported for both May – down to $18.9500 – and June – down to $17.925.
Elsewhere, GDT reported striking losses for butter milk powder which slipped 15 per cent in value – the biggest loss of the trade. Butter futures closed mixed, although April bucked the trend by edging higher to $1.92.
The GDT listed anhydrous milk fat (AMF) as the other major loser – down 11 per cent. This maintains a run of lower GDT results for AMF since the 14 February trade.
US liquid futures gapped with Class IV matching powder and reporting major losses of up to 53 cents for June at $21.00.
Meanwhile, Class III milk showed upward movement with the May contract rocketing 55 cents to $22.26. Many contracts settled at the day’s highs and September finished 18 cents higher at $19.86.