Dairy prices show significant sign of weakness in 2019

Modest bearish moves in dairy auction prices two weeks ago (May 21) gave way to more substantial downward movement in prices this past week. Fonterra’s Global Dairy Trade platform registered a 3.4 percent decrease in its dairy product price index this past week on a second consecutive drop in prices. A total of 148 bidders on nearly 20,000 MT of products revealed weakness across most product categories. Dairy fat–containing products fell more than most, with anhydrous milkfat down 5.7 percent and butter down a whopping 10.3 percent. Whole milk powder pricing fared better but still fell 1.5 percent in price. Protein was the darling of the portfolio and registered the only real gain, with lactose basically unchanged at a 0.4 percent gain. It could be that rising global trade uncertainty have traders more cautious about future economic growth and demand. Likewise, last week’s surprise announcement of tariffs on Mexican exports to the U.S. also put the market on edge.

Change in Global Dairy Trade price index


Source: Global Dairy Trade
Posted by: Information Services
Our Information Services team assists our clients with understanding commodity and ingredient market dynamics. Using our extensive database of intelligence, we also produce regular commodity and commercial market publications covering supply and demand fundamentals, news alerts on events that shape the markets, and resource guides to give you a complete picture of the industries we monitor.

Leave A Comment