After an interim recovery in the early summer, the Global Dairy Trade Index dipped again this week by 1% (previously by -1.7% and -5.1%). The average price for Italian spot milk fell in August by 2.1% to 34.4 cents per kg as compared to the previous month (-23.2% as compared to August 2019).

The EU-27 milk price also fell in July. It shrank a further 0.2% and was estimated at 32.5 cents per kg. The EU butter prices were around 340 EUR per 100 kg, which is a stagnation (+/– 0%) as compared to the previous week, but an increase of 1.2% over the last four weeks. The EU skimmed milk powder prices are currently 212 EUR per 100 kg, which is an increase of 1.4% as compared to prices four weeks ago.
 
The rates for dairy product futures on the European Energy Exchange (EEX) showed a slight upward trend. For example, skimmed milk powder contracts for November had increased as of 1 September by 2.2% to 2,200 EUR per tonne according to a weekly comparison, while those for butter had increased in the same period by 2.3% to reach 3,395 EUR per tonne.

This article comes from our current EMB newsletter. Find more interesting topics here.