This week’s GDT auction in New Zealand resulted in a slight rise in average dairy commodity prices, particularly for milk powder prices.

The benchmark GDT index increased almost 2% in value this week as the average price of whole milk powder (WMP) – the key commodity traded on the GDT – lifted 1.8% to reach $3,040/t (€2,560/t).

The average price of skimmed milk powder (SMP) increased 2.5% at this week’s GDT auction to hit $2,800/t (€2,360/t), which is a significantly higher price level than SMP prices here in Europe.

The lift in milk powder prices was only partially offset by a 3.5% decline in New Zealand cheddar prices to $3,640/t (€3,070/t). Despite this week’s increase, dairy prices that comprise the GDT index are still almost 10% behind where they were this time last year.

The GDT dairy index began a steady decline from January to May this year and while there has been some improvement over the summer, average dairy commodity prices are still behind where they were last year.

Closer to home, dairy markets in Europe are noticeably quiet this week. Prices are generally very steady, but the volume of product being traded is quite low. On cheese markets, spot prices for cheddar are steady at €3,150/t, while mozzarella prices continue to weaken as the food service sector has been hit for a second time with fresh COVID-19 restrictions on public dining.

Butter prices are steady at €3,300/t, while spot prices for European SMP remain at €2,130/t this week.