Dairy commodity markets under pressure

It has been a bad week for dairy commodities, with negative outcomes at the GDT and Dutch Dairy Board auctions.

Tuesday’s GDT auction was down for the fourth time in a row, and has now recorded eight negative auctions from the last 10 events.

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The price index fell 1.9% to US $2,901/t, a two-year low point. Butter fell 5.9% to $4,016/t, with cheddar down 1.2% to $3,468/t. Whole milk powder (WMP) fell 1.2% to $2,753/t with skim down 0.3% to $1,983/t.

Dutch auction

The Dutch Dairy Board auction on Wednesday was also negative, with butter down €100/t on last week.

Butter is now valued at €5,000/t. It has fallen by €500 over the past month and is down by more than €1,000 from peak prices in June.

WMP dropped €50 to €2,700/t, with skim down €20 to €1,530/t

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