Opinión

GDT Auction Slips Lower Again, Continuing Its Descending Trend

Dairy
Market & Price Trends
Publicado 4 de ago. de 2022
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The global dairy trade auction on Tuesday 3rd of August fell once again by 5% to an average selling price of $3913/mt. It continues the downward trajectory that the auction has been on since mid march. On Tuesday, the price index dropped 5%, similar to the decline two weeks ago.

The global dairy trade auction on Tuesday 3rd of August fell once again by 5% to an average selling price of $3913/mt. It continues the downward trajectory that the auction has been on since mid march. The auction that takes place fortnightly has seen negative price changes, but for the trade on the 7th of July when the average price index rose by (+1.5%).

At the event of July 19th, almost exactly two weeks ago, the price index fell by (-5%) marking the largest drop dating back to the (-8.5%) downturn on May 3. On Tuesday, there was a repeat of the drop- the overall price index fell a further (-5%) to $3913/mt. This drop also marks the fourth consecutive decline since the end of June, which may compel Fonterra to pull back its milk price forecast for farmers.

At this event, 27,500 quantities of products were sold, with 161 bidders participating. There were 15 rounds of bidding, with 120 bidders recording wins. Two Products, lactose and sweet whey powder, were not offered at this event. The minimum supply was 25,210 mt and the maximum supply was 28,700 mt.

Those products that were offered, however, all closed lower. Buttermilk powder took the biggest hit, falling (-9.2%) to $3,724. Butter and Whole milk powder were at par, each taking a (-6.1%) loss to finish at $5,194 and $3,555, respectively. Skim milk powder also fell at a lower rate than the other powders at (-5.3%) to $3,524. Anhydrous milk fat and cheddar finished the pack- Anhydrous milk fat fell (-1.4%) to $5,518 while the latter fell a relatively marginal (-0.7%) to $4,798.

Recent market sentiments have weighed down on dairy commodity prices, with the GDT not escaping the contagion. Lull demand from Chinese buyers on the back of recent Covid induced restrictions and lockdowns is putting a bearish slant on the GDT. The current climate of inflation in many commodity markets has also meant buyers are slowing down on their purchases and slowing down trade.

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