The result from last week’s GDT auction was the signal dairy markets have been waiting for. While world market quotes for butter and cheese have been improving since early May, this week’s GDT was the first real indication of an upward swing in milk powder prices.

Although prices have a long way to recover, the near 10% jump in the average selling price of whole milk powder (WMP) at last week’s GDT to $2,265/t gave dairy markets the kind of positive kickstart not seen in almost a year.