Global dairy prices rebound with promising signs for next season

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 ...