The GDT recorded its fourth consecutive decline since the beginning of 2016 after the benchmark dairy index lost almost 3% at Tuesday’s auction in New Zealand. The average price of product sold at the latest auction fell by 2.8% to $2,235/t and leaves the index at its lowest point since September last year.
This latest drop in prices at this week’s GDT auction had been forecasted with futures prices for whole milk powder (WMP) retreating by more than 12% in the last fortnight according to data from the NZX exchange.
WMP is the key commodity traded on the GDT making up over half of sales and the main driver of the index’s performance. WMP prices fell by almost 4% to just under $1,900/t, while the average price of skimmed milk powder contracts fell by more than 1% to less than $1,800/t.
The biggest drop in average selling price was for rennet casein, which plunged almost 12% to $3,850/t.
There were also decreases in the average selling price for cheddar (-5.6%), butter (-2.3%) and butter milk powder (-1.2%). The only dairy commodity to gain at this week’s auction was anhydrous milk fat which increase by 1.5%.
While the volume of product sold on the GDT remains low, there is a tendency for volumes to begin to decrease as we enter the spring. At this latest event, a little over 22,000t were sold via the auction platform, which is in line with this time 12 months ago but significantly back from the 34,500t sold this time two years ago.
Read more
Dairy futures market: Another drop in GDT Index on the cards
GDT plunges by more than 7% after latest auction
The GDT recorded its fourth consecutive decline since the beginning of 2016 after the benchmark dairy index lost almost 3% at Tuesday’s auction in New Zealand. The average price of product sold at the latest auction fell by 2.8% to $2,235/t and leaves the index at its lowest point since September last year.
This latest drop in prices at this week’s GDT auction had been forecasted with futures prices for whole milk powder (WMP) retreating by more than 12% in the last fortnight according to data from the NZX exchange.
WMP is the key commodity traded on the GDT making up over half of sales and the main driver of the index’s performance. WMP prices fell by almost 4% to just under $1,900/t, while the average price of skimmed milk powder contracts fell by more than 1% to less than $1,800/t.
The biggest drop in average selling price was for rennet casein, which plunged almost 12% to $3,850/t.
There were also decreases in the average selling price for cheddar (-5.6%), butter (-2.3%) and butter milk powder (-1.2%). The only dairy commodity to gain at this week’s auction was anhydrous milk fat which increase by 1.5%.
While the volume of product sold on the GDT remains low, there is a tendency for volumes to begin to decrease as we enter the spring. At this latest event, a little over 22,000t were sold via the auction platform, which is in line with this time 12 months ago but significantly back from the 34,500t sold this time two years ago.
Read more
Dairy futures market: Another drop in GDT Index on the cards
GDT plunges by more than 7% after latest auction
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