The GDT fell 2.4% at this week’s auction in New Zealand – the biggest decline in the benchmark dairy index since early March.
The GDT was dragged lower by a near 3% decline in whole milk powder (WMP) to just over $3,000/t. WMP is the most important commodity traded on the GDT accounting for over 50% of sales.
Skimmed milk powder (SMP), which is the second heaviest traded commodity on the GDT, saw prices weaken by 1.4% to less than $1,900/t.
However, it was interesting to see products in the fats complex also recording losses at this week’s GDT.
Butter prices were down 4% to less than $5,850/t, while anhydrous milk fat declined by more than 3% to $6,500/t.
The price of butter milk powder also tumbled more than 10%.
The only dairy commodities to record a price increase at this week’s auction were cheddar (+2%) and casein (+1%). Just under 38,000t of product were sold at this week’s GDT auction.