World wholesale prices
Updated 08 July 2021
This price series looks at the average wholesale prices of certain dairy products from the EU, Oceania and the US. It aims to provide an overview of global wholesale price movements which can affect prices closer to home.
It was another mixed month for world wholesale prices, with month-on-month movements varying across both products and regions. On a year-on-year basis, prices are almost all substantially up on June 2020 – this will be due to the effect of the initial pandemic lockdowns on markets last year. Only US Cheddar prices buck the trend and are down on the year, possibly due to government support programmes keeping the price up through 2020.
EU wholesale markets were reportedly quiet, with only small movements in prices. In euro terms, as in our EU wholesale prices, price movements were slightly positive or neutral. In US dollars the movements are a bit more mixed, and this may be in part due to a substantial drop in the value of the Euro against the dollar in mid-June.
In Oceania, the butter price dropped 8% on the month. Foodservice demand was reported to have skewed towards AMF in the month as it was cheaper on a butterfat basis, and the price drop has brought butter more in line with the AMF price. For powders, the SMP price was marginally down, partly encouraged by EU powder prices being lower. The WMP price fell 2% on the month, but price levels are still considered strong. Cheddar prices were also marginally down. For WMP and Cheddar, reports indicate that declines on the GDT have reduced the lower end of the price range, but off-GDT deals have supported the upper end.
In the USA, butter prices fell slightly; reports indicate that foodservice demand is strengthening but retail demand is soft, while supplies are ample. SMP prices weakened through the month but still averaged 2.5% higher than in May overall. The WMP price rose 1.5% as buying interest picked up through the month but supplies were limited. Lastly, cheese fell nearly 10%, with reportedly high volumes of milk going into cheese throughout the month, increasing availability.
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