Butter is getting cheaper, and Cheddar cheese is increasing: results of GDT trading

According to the results of the 389th GDT auction held on October 7, the price index decreased by 1.6% to 1180 points. The average price of dairy products amounted to $3921/t, which is $120 less than at the previous auction. The increase in milk production in key dairy regions and stable demand caused an expansion of supply in the market, which affected quotations. Prices for most products decreased, and the FAO Price Index in September fell by 2.6% compared to August, but remained 9% higher than a year ago, notes analyst Georgy Kukhaleishvili of the Milk Producers Association.

Among the main products, butter (–3%) and non-fat dry milk (–2.3%) decreased the most in price. In Europe and New Zealand, the growth in milk production and record production caused a surplus of dairy raw materials, which is putting pressure on prices. Meanwhile, in the United States, demand for butter remains stable, but mainly in the retail segment. According to the auction organizers' forecasts, butter may become cheaper by another 4.3% in November and by 3.7% in December.