The Global Dairy Trade (GDT) price index increased by 9.9% after today’s trading event to leave the index at its highest point since the beginning of April this year. With an average selling price of $2,834/t for dairy commodities, this is the fourth consecutive rise in the GDT index since August.

Albeit from a low base, dairy farmers and processors alike will welcome the continued lift in the index as a further indication that the market has bottomed out and a signal that a real recovery in milk prices may be a possibility over the coming months.

Products sold

The volume of product sold on the GDT continues to be low compared with previous years. More than 35,000t of dairy commodities were sold during today’s trade, down significantly compared with the 55,000t sold this time last year.

Butter milk powder made the largest gains during today’s auction, with the average price increasing by almost 14% to $1,945/t. Milk powders also sold strongly. A 13.4% increase in the average price achieved for SMP was slightly better than the 12.9% gain in the average price of WMP.

Cheddar gained marginally (0.5%) for an average price of $3,234/t. Butter was the only dairy commodity to record a decline, with the average price down by 2.3% to just over $3,000/t.