Market report: Dairy commodities firm in September

UK skimmed milk powder and bulk cream prices continued to rise in September, and all dairy commodities remain well above last year’s values.

Skimmed milk powder values increased by £50/t, with cream markets up by the same amount due to improved export prices, the latest DairyCo market report revealed.

This was despite a cumulative rise in milk production of 3.3% so far in the quota year. “With the highest UK milk output for August in five years, the recent recovery in UK milk production has now continued for four successive months,” the report said.

“Firmer EU commodity prices have been reflected in some UK spot markets, particularly for milk and whey powders. This has been reinforced by the slump in sterling against the euro, which should keep UK commodity prices moving forward, if it continues.”

Bulk butter values slipped by £50/t in September due to quiet demand, but were still 23% above last year, at £3250/t. The cheese market was also quiet, with mild cheddar easing by £50/t and mature cheddar prices unchanged at £3050/t.