Opinion

GDT Auction Gain 1.5%, Bucking the Negative Trend Since March

Dairy
Market & Price Trends
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The global Dairy Trade price index gained 1.5% in its recent auction to 1,359. It's the first time since March 2022 that the price index has gone up so goes to interrupts the sequence of losses at the previous five events. The weighted average prices came in at $4,656/mt.

The global Dairy Trade price index gained 1.5% in its recent auction to 1,359. It's the first time since March 2022 that the price index has gone up so goes to interrupts the sequence of losses at the previous five events.

The weighted average prices came in at $4,656/mt with 21,435 products sold across all product classes. This came out of a maximum of a quantity of 23495 and 14 bidding rounds at the event. The quantity sold at this event was 12% down from the previous event but according to market sources, the quantity isn’t ample for the nearly insatiable demand at this time of the year.

Apart from Cheddar and Whole Milk Powder which fell 3.6% to $5,365 and 0.3% to $4,158 respectively, all products offered closed firmer. Butter made the strongest gain of 5.6% to $6,068 while Butter Milk Powder followed with a 4.5% increase to $4,398. Skim Milk Powder also gained 3% to $4,240 with Anhydrous Milk Fat completing the gains pack with a 2.7% to $6,201. The group of Lactose and Sweet Whey Powder weren’t offered at the last event.

Chinese demand at this event was unexciting owing to the introduction of lockdown measures to combat the re-emergence of corvid-19. Needless to say, buyers from Southeast Asia were the biggest buyers taking up significant volumes of skim milk powder and whole milk powder.

With Oceanian SMP prices trading at a discount to European prices currently, this event saw European buyers coming in to buy more than double of SMP that was bought in the event 3 weeks ago. This could be a good indication of where global dairy commodity prices are heading.

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