Executive Summary

Dairy product prices declined slightly during the GDT event held Apr 20^th. Highlights from the most recent auction include:

• The GDT Price Index declined 0.1% at the Apr 20^th event, finishing lower for just the second time in the past 11 auctions but remaining near recently experienced seven year high levels.
• Declines in prices within the Apr 20^th event were led by lactose, followed by anhydrous milkfat and butter. Whole milk powder prices rebounded slightly from the previous auction while cheddar cheese prices also finished higher, reaching a 12 month high level. Skim milk powder prices finished unchanged from the previous event.
• Total quantities sold for all products at the Apr 20^th event declined seasonally to a nine month low level but finished 21.5% above previous year figures. Apr ’21 volumes sold for all products reached a seven year high seasonal level.

Additional Report Details

Dairy product prices declined 0.1% within the Global Dairy Trade (GDT) event held Apr 20^th, finishing lower for just the second time in the past 11 auctions but remaining near recently experienced seven year high levels. The GDT Price Index represents a weighted-average of the percentage changes in prices between trading events for all products offered.

The GDT Price Index remained 43.9% above previous year price levels at the Apr 20^th auction, reaching an eight year high seasonal level. The GDT Price Index finished 27.9% above the three year average price for the second auction of April, finishing above three year average figures for the 11^th consecutive event.

Within the latest auction, declines in prices were led by lactose (-3.4%), followed by anhydrous milkfat (-3.3%) and butter (-0.6%). Skim milk powder prices were unchanged from the previous event while whole milk powder (+0.4%) and cheddar cheese (+1.2%) prices finished higher. Butter milk powder and sweet whey powder were not sold at the Apr 20^th event.

The table below provides a summary of the most recent GDT weighted average winning prices for key products. Butter has been adjusted to 80% butterfat and skim milk powder (SMP) has been adjusted to 35% protein content (equivalent to U.S. nonfat dry milk) in the $/lb columns below. CME spot and average futures prices are based on Apr 19^th figures. CME average futures prices are weighted average prices based on the most recently reported percentage of the total quantity sold in each GDT contract period.

Total quantities sold for all products at the Apr 20^th event declined 0.3% from the previous event, reaching a nine month low level. Total quantities sold for all products remained 21.5% above previous year figures, however, increasing on a YOY basis for the third consecutive auction. Total quantities sold had finished lower on a YOY basis over 16 consecutive events through the first auction of March, prior to increasing on a YOY basis throughout the three most recent auctions. Total quantities sold typically reach seasonal high levels throughout the months of October and November, prior to declining seasonally throughout the months of December – May.

Volumes sold for all products within the April auctions declined 4.4% from average March volumes sold but remained 22.6% above last year’s average volumes sold for the month of April. Apr ’21 volumes sold for all products reached a seven year high seasonal level.

U.S. butter prices remained at a discount to GDT winning prices at the Apr 20^th event when accounting for differences in butterfat levels, despite GDT butter prices declining from the previous auction. U.S. spot butter prices are currently trading at a 26.3% discount to GDT prices while CME futures prices traded at a 24.7% discount to GDT prices from May ’21 – Oct ’21.

U.S. cheddar cheese prices remained at a discount to GDT winning prices at the Apr 20^th event as GDT cheddar cheese prices reached a 12 month high level. U.S. spot cheddar cheese prices are currently trading at a 12.0% discount to GDT prices while CME futures prices traded at a 7.4% discount to GDT prices during Sep ’21 – Oct ’21. Cheddar cheese was only sold at the GDT auction for Contract 5 and Contract 6.

U.S. nonfat dry milk futures prices remained at a discount to GDT skim milk powder winning prices at the Apr 20^th event when accounting for differences in protein values as GDT skim milk powder prices remained near recently experienced six and a half year high levels. U.S. spot nonfat dry milk prices are currently trading at a 21.4% discount to GDT skim milk powder prices while CME futures prices traded at a 19.6% discount to GDT skim milk powder prices from May ’21 – Oct ’21.