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The GDT recorded its fourth consecutive negative result at this week’s auction in New Zealand. The benchmark dairy index declined a further 3.4% this week, following the 3.5% decline in early November.
The GDT is now at its lowest point since early March 2017.
This week’s decline was a result of further weakness in powder prices. The average selling price of whole milk powder (WMP), which is the most important product traded on the GDT accounting for more than 50% sold, fell almost 3% to less than $2,800/t (€2,370/t).
WMP prices are now at their lowest level since October 2016.
SMP falls further
Skimmed milk powder (SMP) preformed even worse this week, with average prices falling close to 7% to $1,700/t (€1,450/t).
This decline in SMP prices follows a similar trend in Europe over the last week where SMP prices on the Dutch dairy board fell to €1,460/t. The global price of SMP is now well below the EU’s intervention price floor.
On the fats side, butter prices fell a further 6% at this week’s GDT to less than $5,150/t (€4,400/t), while cheddar prices were back more than 4% to $3,830/t (€3,270/t). Casein prices plunged 13% below $4,650/t (€3,960/t).
More than 35,000t of product were sold at this week’s GDT.
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