Skim milk powder back in the game

In the GDT auction overnight, SMP price rose 3.3% to $US3017/metric tonne, the highest level in five years.

Over the past few years SMP prices struggled due to the high stocks produced in the EU: huge stockpiles of SMP held by EU members have been holding prices down.

In August 2015, SMP prices slumped to US$1419/MT. Around this time last year, SMP was fetching only US$1965/MT.

The EU stocks are now dwindling and due to lower prices manufacturers have directed milk away from SMP into other product mixes, resulting in a shortage.

This has helped SMP prices reach the highest level seen in five years.

The GDT price index for last night’s auction rose 1.7% compared to the previous auction.

Whole milk powder price rose 2.2% to US$3321/MT.

Key results

AMF index down 1.5%, average price US$5,108/MT

Butter index down 1.3%, average price US$4,061/MT

BMP not offered

Ched index up 2.5%, average price US$3,701/MT

LAC index up 1.3%, average price US$775/MT

RenCas index up 5.6%, average price US$7,668/MT

SMP index up 3.3%, average price US$3,017/MT

SWP index not available, average price not available

WMP index up 2.2%, average price US$3,321/MT