Milk Powder Prices Rise as Butter and AMF Decline at Pulse 120

Global dairy commodity markets delivered mixed results at Global Dairy Trade (GDT) Pulse Event 120, held on October 27, 2026. Most milk powder products recorded price increases, while butter and anhydrous milk fat (AMF) prices declined, highlighting diverging trends across major dairy commodities.

According to DCA Market Intelligence, Pulse Event 120 was the 23rd auction of 2026. The results differed from those of the previous Pulse event and GDT Event 414, indicating that strength in milk powders has not translated into a broad-based recovery across the dairy market.

Milk Powders Lead Market Gains

The increase in milk powder prices signals comparatively stronger performance in the powder segment during the latest trading event.

Skim milk powder (SMP) and whole milk powder (WMP) are important internationally traded dairy ingredients used in food manufacturing, confectionery, bakery products and dairy processing.

Price movements in these commodities influence purchasing decisions among processors, traders and importers, particularly those dependent on international markets for milk ingredients.

Butter and AMF Face Downward Pressure

In contrast to milk powders, butter and AMF prices declined during Pulse Event 120.

These products are key indicators of demand for dairy fat, which serves different end uses from milk powders. Their weaker performance suggests that demand and pricing conditions are not moving uniformly across dairy commodity categories.

For dairy processors, the divergence makes it increasingly important to assess the economics of milk fat and milk solids separately when planning production and procurement.

What the Latest Results Mean for Dairy Businesses

The contrasting performance of milk powders and butterfat highlights three important considerations:

• Procurement strategy: Dairy ingredient buyers need to monitor individual commodity trends rather than rely solely on overall market sentiment.
• Processing economics: Changes in powder and fat prices can influence the relative value of different dairy products.
• Market risk: Manufacturers and traders may need to adjust purchasing and inventory strategies as commodity prices move in different directions.

Outlook for the Global Dairy Industry

Pulse Event 120 reinforces the importance of tracking product-level price movements in the international dairy trade.

While higher milk powder prices may support sellers of skim and whole milk powder, declining butter and AMF prices indicate continued pressure in the dairy fat segment.

The direction of future prices will depend on the balance between global milk supply, buying demand, product inventories and developments in major exporting and importing markets.

The key takeaway: The global dairy market is showing mixed signals, with milk powders strengthening while butterfat weakens. For dairy businesses, understanding these differences is essential for procurement, pricing and margin management.

Source: Read full story here 29 Oct, 2026 Edited and Reported by

#DairyNews7x7 #GlobalDairyTrade #DairyIndustry #MilkPowder #SkimMilkPowder #WholeMilkPowder #ButterPrices #AMF #DairyCommodityMarket #DairyMarketTrends #MilkSolids #DairyTrade