After peaking in early March, global dairy prices ran into resistance, with sluggish performance over the past two and a half months. This past week’s Global Dairy Trade auction results yielded a modest decline of 0.9 percent, bringing the cumulative performance to a drop of 5 percent following the first quarter’s highs.
It only makes sense that the bull market of early 2021 would stall and correct after the rapid price ascent and the Northern Hemisphere’s springtime flush, which brought steady higher milk flows. The Jun. 1 platform results yielded 0.5 percent drop in milk powder prices (whole milk powder and skim)– and a 0.8 percent drop in anhydrous milkfat’s price.
Over the past month, prices for nonfat dry milk have fallen 10 cents per lb and cooled some of the feverish April sentiment that had dominated trading.
Nonfat dried milk futures