It’s fair to say the global dairy commodity market has had a bumpy start to 2023.
In fairness, there probably has been more dips and ups in the market as the Christmas holiday period washed through.
This week, the steady result from the New Zealand-based Global Dairy Trade (GDT) auction will, you would expect, underpin and bring a bit more stability to the market.
There have been more losses on the GDT of late, but this mid-January result will help bring a touch of positivity to the market.
Similar to previous auctions, there was about 30,000 tonnes traded.
So this is the New Zealand auction and it’s fair to say the European market is not as forgiving and is probably still on a bit of a dip
According to those in the market coming back from holidays, the European market is still a bit depressed and there is more of a ‘hold’ position at play rather than a ‘I better get business done’ vibe.
So, effectively, we now have a New Zealand auction showing very little change, a European market coming from a high place and maybe getting close to a bottom.
Making a move
European buyers will be looking at the GDT result and wondering is that it and should we move.
We can only wait for another week to see what they will actually do. The experts suggest the GDT result is positive and will place a floor on the EU market to an extent.