Global Dairy Trade Price index Up 3.2 %, its First Price Rise in 2023

The GDT auction yesterday the 7th of February saw its overall price index going up 3.2% from the last event and an overall average price of USD 3456/mt. It's the first rise in 2023 which is making some market insiders suggest the bottom has been reached following a general weakness during most part of last year.

Butter made the biggest gain, up 6.6% to an average price of $4745. Anhydrous milk fat which was down 5.1% in the first auction of 2023 also rose 4.8% to finish at an average price of $5586. Whole milk powder followed the pack with a 3.8% gain to an average price of $3329 very different from its 1.4% fall over a month ago.

Cheddar and Buttermilk powder were neck-in-neck once again at this auction gaining 2.3% and 2% respectively to an average price of $4980 for Cheddar and $2633 for the latter. Sweet whey powder and Lactose weren’t offered at this event but finishing the reference products list is Skim milk powder which ended the event flat at $2829.

Looks like an uptick in demand coming out from China has aided in the price recovery. This drift, Tridge asserts, is likely to linger if normalcy return to China but it all depends on how early the Beijing government lifts the zero-corvid policy. That said, the growing demand in Chinese milk domestic production may be the one factor that will limit the demand already discussed.

Tridge is of the view that the bottom of the market may have been reached and so the index will stay flat to positive up at least in the near term.