Having been in the doldrums since last October, the GDT appears to have jumpstarted into life this week as a strong increase in the selling price of whole milk powder (WMP) helped push the index higher.

The average selling price of WMP, which is the most important commodity traded on the GDT accounting for more than half of product sold, jumped by almost 10% to $2,265/t. Skimmed milk powder (SMP) also saw an increase in prices of 2% to $1,965 but overall SMP prices still remain challenged.

There was also a strong increase in the average selling price of butter (+7%), butter milk powder (+8%), casein (+16%), anhydrous milk fat (+5%) and lactose (+4%).

The only product to see a drop in price was cheddar as average prices fell by a marginal 1%.

Improvement

Volumes sold at the auction were also strong at just under 35,000t. At this point in the year, much of the product being sold at the GDT is contracted for well into the main milking season in New Zealand.

This strong jump in the GDT shows a strong improvement in sentiment in dairy markets. Butter and cheese prices have been improving for several weeks and, last week, the USDA hinted that it could see the early signs of an improvement in milk powder prices.