After seven months of consecutive decline, the GDT index finally stopped the rot this week when it returned a positive result for the first time since May.
This week’s GDT auction saw average dairy prices rise a little over 2% to an average sale price of $2,820/t.
The benchmark dairy index was led higher by a 2.5% rise in the average price of whole milk powder (WMP) to $2,670/t (€2,350/t), while skimmed milk powder (SMP) prices were marginally higher at $1,970/t (€1,735/t).
Fat prices also rebounded somewhat, with butter prices lifting almost 3% to $3,745/t (€3,300/t) and anhydrous milk fat prices rising 4% to $4,755/t (€4,190/t).
Closer to home, European dairy markets are generally quiet, with small volumes trading. Butter prices reported to the Dutch Dairy Board fell slightly in the last week to €4,160/t. Irish butter prices have fallen below the €4,000/t mark in the last week, with product trading in the region of €3,700/t and €4,100/t.
Encouragingly, powder markets are showing signs of life. WMP prices reported to the Dutch Dairy Board lifted to €2,670/t this week, while European spot prices for SMP are trading between €1,660/t and €1,700/t.
Next week, the European Commission will hold the final tender sale of 2018 for SMP from its intervention stockpiles. Market expectations are already growing that a further 25,000t to 30,000t of product will be sold, which would leave less than 140,000t still to be sold in the new year.