The GDT dairy index recorded its eighth decline out of the last 10 events at this week’s dairy auction in New Zealand.

The index fell a further 1.3% at this week’s auction, with just over 39,000t of dairy product sold.

The benchmark dairy index is now at its lowest point since October 2016, with continued weakness in the price of milk powders dragging the GDT lower over recent months.

The price of whole milk powder (WMP), which accounts for over 50% of all the product traded on the auction platform, fell a further 2% at this week’s auction to just under $2,770/t (€2,370/t).

WMP prices as traded on the GDT platform have fallen at nine of the last 10 auctions and are now at their lowest point in over nine months.

Similarly, the price of skimmed milk powder (SMP) weakened by just over 1% this week to $1,980/t (€1,695/t).

Butter

Butter prices were flat at this week’s GDT, holding at $4,270/t (€3,655/t).

As you can see, New Zealand butter is priced far lower than European product.

According to the Dutch Dairy Board, butter prices in Europe dropped 5% on last week to €5,250/t.

Spot prices for butter reported by dairy traders in Europe are ranging from €4,800/t to just over €5,000/t, as the market continues to correct slightly. Demand for butter remains strong and supplies are tight on the continent, which should underpin prices into the back end of the year.