Global Dairy Trade (GDT) index rises after months of decline

After a steady decline in pricing on the Global Dairy Trade (GDT) auction since October last year, the overall price index increased by 3.2% at the latest event.

Price increases were recorded for almost all contracts, with only a couple of exceptions on nearby skim milk powder (SMP) and cheddar contracts.

Overall, all product prices moved up, or remained unchanged, during the auction on Tuesday (7 February).

Total volumes sold also increased, but prices were bid up on the back of increased activity as buyers return to the market after a quiet January.

The fats categories of butter and anhydrous milk fat (AMF) saw the biggest moves, with average prices up by 6.6% and 4.8% respectively from the previous event.

Whole milk powder, which dominated sales with over 50% of the volume, increased by 3.8% to USD$3,329/tonne.

While a good result for whole milk powder (WMP), the average price is still 23% below where it was at the beginning of February last year.

Skim milk powder was less in demand, with the average price on contracts for delivery in March and April down by 0.5%.

There were small increases in average prices on other contracts, but overall, the weighted average price remained at USD$2,829/tonne.