Global Dairy Trade Auction Prices Records Its Fourth Consecutive Fall but Sees a Rise in Quantity Sold

Published 2022년 5월 5일

Following recent tumbles in the GDT auction, the price index fell 8.5% in yesterday’s event, the fourth successive drop so far this year. The index fell 8.5% from the previous event with an average selling price of $4,419 per metric ton, the lowest since 4th January. In addition, all products offered saw their average selling price tumble. The reason given for the fall in the index is that buyers have been hesitant in buying at the current high prices.

Following recent tumbles in the GDT auction, the price index fell 8.5% in yesterday’s event, the fourth successive drop so far this year. On the event of 19th April, the price index dropped by 3.6% to $1,507 perceived to be a significant fall off the back of weaker demand from Chinese buyers. The drop yesterday however is stronger than that seen a fortnight ago. The index fell 8.5% from the previous event with an average selling price of $4,419 per metric ton, the lowest since 4th January.

At yesterday's event which took 2 hours and 35 minutes, there were 19 rounds of bidding with 107 winning bidders. In addition, 132 bidders participated in the bidding of 25,160 metric tonnes of products that were sold. The 25,160-quantity sold at the event yesterday was up 13% from the previous auction.

All products offered saw their average selling price tumble. Butter took the biggest hit. It fell 12.5% to $5,807. It was then followed by anhydrous milk fat (AMF) which fell 12.1% to $6,008. Butter milk powder (BMP) was not left out, also falling 6.1% to $4,203. Lactose and sweet whey powder (SWP) were not on offer at this event but Cheddar which was offered likewise fell by 8.6% to an average price of $5,652. Whole milk powder (WMP) and skim milk powder (SMP) were not left out in the bearish turn of action- WMP and SMP both fell 6.5% to $3,916 and $4,130 respectively.

The reason given for the fall in the index is that buyers have been hesitant in buying at the current high prices. Coming off the bullish sentiments that supported the dairy commodity market in the first quarter of the year: milk supply was subdued in all major producer countries while demand for milk and other derivative products were heightened creating an unbalanced market situation. The situation has since recovered slightly, in New Zealand and the USA where good weather has pushed milk collections up. In Europe however, although improved weather conditions and good grass growth have enhanced collections, they are still below year-ago levels.