Tridge summary
The Global Dairy Trade (GDT) prices experienced a 2.8% increase at the April 2 auction, indicating a rebound from the previous month's decline. This recovery was driven by significant price gains in cheddar, whole milk powder, and butter, despite losses in butter milk powder and lactose. The auction also saw a modest return of Chinese buyers and a premium on later-dated whole milk powder contracts, suggesting a positive outlook for the 2024-25 season. Economists from ASB and Westpac anticipate that dairy prices may stabilize and gradually rise, supported by limited dairy output in the northern hemisphere and the return of buyers from the Middle East and Europe. However, the global dairy industry continues to navigate challenges such as fluctuating milk production, supply disruptions, changing demand, weather conditions, geopolitical tensions, and economic factors.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.
Original content
Global Dairy Trade (GDT) prices rebounded at the April 2 auction with the glimmer of promising signs for 2024-25. The GDT price index was up 2.8 per cent, reversing some of the decline in March. Gains were broad based with the cheddar up 4.1pc, whole milk powder up 3.4pc and butter up 3.1pc, Only butter milk powder (down 0,5pc) and lactose (down 3.1pc) recorded losses. The return of Chinese buyers to the market - although at modest levels - has provided some confidence about prices next season. ASB economist Nat Keall said later-dated WMP contracts were still commanding a premium over shorter-term contracts. "That shows this auction's rebound hasn't been driven by a short-term supply squeeze and might point to a little bit of momentum as the season gets underway," he said. "China was a little bit more active in the WMP market than it was last auction (taking nearly half the product on offer), but that still isn't a particularly big chunk by historical standards, and we need to see ...
Source: Farmweekly
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