World prices for milk increased by 1.6% in September

Submitted by bashun on Fri, 10/06/2017 - 10:36

According to IFCN in September, the world price for milk was 39 $ / 100 kg ECM, which is 1.6% higher than the price of August and will be 17% higher than in September 2016.

This is reported by
The main drivers of the dairy market in this period were the prices of milk fat. At the same time, in August, the gap between the price of butter and dry condensed milk was a record $ 4083 per ton, which in turn affects the current situation in the milk market. The latest auction of GDT (October 3) showed a decline in the index for dairy products by 2.4%. One of the reasons was the increase in the supply of dairy products for sale. Under such conditions, the number of participants decreased.
The stocks of dry milk in the EU are still not sold, and this further worsens the state of affairs. Farms are quite concerned about this inaction of the European Commission. The tender of September 19 did not bring any results. However, the organizers do not plan to reduce the price, which is now higher than the market price.
In addition, the rise in oil prices, as experts say, affects not only demand, but also supply. According to the European Commission, oil production in the first half of the year decreased by 5.5%. After all, processors get the highest yield from cheese and whey. Therefore, the rise in prices for milk, prompted farmers to "disperse" the production of milk by changing the diet of feeding cows. This in turn negatively affects the fat content in milk, moreover, in the summer months it is already less.
The price gap between butter and milk powder, as well as the restoration of milk production in the main producing countries, may lead to a reduction in the price of milk. Although most likely it will be possible already from the beginning of the new year. In the coming months, the focus will be on weather conditions in Oceania, because they will soon begin the "big milk" season.
What is in Ukraine? Prices for milk also grew during September. The main drivers were active exports and low milk supply.
The weighted average price for extra-premium milk was at the level of 9.51 UAH / kg including VAT. This is 14.3% higher than the price of August and will be 53% higher than in September last year.
The highest grade for the month added 12.3% - 9 UAH / kg, and the first about 12% - 8.60 UAH / kg.
At the same time, compared to world prices, we are still an order of magnitude lower. According to the results of September, the price of ECM milk in Ukraine was $ 29.16 / kg.

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