January 21, 2022 MPC Friday Report

Updated: Feb 1

 

Save the Date: April 12-14 | California Dairy Sustainability Summit

By Kevin Abernathy, General Manager


This April 12-14, join dairy farmers, industry leaders, world-renowned researchers, policymakers, global food and nutrition professionals, and many other expert speakers for the virtual California Dairy Sustainability Summit. MPC is proud to once again be an event partner of the Summit and we will have more details about registration options in upcoming Friday Reports. Learn more about the Summit at CADairySummit.com.


 

Milk, Dairy and Grain Market Commentary

By Sarina Sharp, Daily Dairy Report


From Warsaw to Wellington, and Canberra to Chicago, the dairy markets are forging multi-year highs all around the world. At the Global Dairy Trade (GDT) auction on Tuesday, the GDT Index jumped 4.6% to its highest price since March 2014, led by a 5.6% increase in the price of whole milk powder (WMP). GDT skim milk powder (SMP) and butter values climbed 5% from the previous auction. GDT butter and cheese both scored all-time highs, while SMP climbed to prices not seen in nearly eight years. Adjusted for protein, GDT SMP is equivalent to nonfat dry milk (NDM) at $1.92 per pound. The strong showing initially boosted CME spot NDM to $1.85, but the spot market faded Thursday and closed at $1.815, unchanged from last Friday.


Lower milk output in the U.S., Europe, and Oceania slowed milk powder production, and strong global demand trimmed stocks. China’s appetite for foreign milk powder seemed insatiable throughout much of last year, but the December data hint that China may finally have enough powder on hand to pause its purchases. China brought in 44.4 million pounds of SMP and 69.9 million pounds of WMP last month, down 22% and 38%, respectively, from December 2020. Despite lighter December arrivals, Chinese milk powder imports reached astounding totals in 2021. The world’s largest dairy importer bought 27% more SMP in 2021 than the prior year, and 24% more than the previous record set in 2019. Chinese WMP imports were 34% greater than 2020 volumes and topped the 2014 record by 22%.


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2022-01-21 MPC Newsletter
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