The first Global Dairy Trade (GDT) auction in August registered a 5% drop in the price index, making it the fourth successive event to record a negative outcome.
Prices averaged US $3,913/t, with the index finishing on 1,193, which is on par with last August. There were sharp falls, with butter down 6.1%, whole milk powder (WMP) down 6.1% and skim milk powder (SMP) down 5.3%.
Nine of the last 10 GDT auctions have seen prices trending downwards from the record highs back in early March.
However, there are some expectations that auctions will return to positive prices this autumn once New Zealand’s milk supply passes peak production.
In contrast, European markets are on a much firmer footing, with supply on a downward trajectory. At the weekly Dutch Dairy Board auction, butter held firm at €7,060/t and remains more than €3,000/t above prices recorded during August of last year. SMP also held firm at €3,640/t, with WMP unchanged at €4,560/t.