Global Dairy Trade continues to nudge downwards
The Global Dairy Trade continues to fall, with its most recent auction seeing its price index fall by almost half a percent.
After trading today, the Global Dairy Trade ended with the GDT Price Index down 0.4pc with the main falls in Butter Milk Powder (BMP) which was down 11.9pc. Butter was down 4.8pc and cheddar was down 1.5pc.
The SMP index was up 3.2pc, with an average price US$2,430/MT.
This is the fourth consecutive fall in the index, although not as steep as the previous three falls.
The amount sold at this auction was slightly up on the previous auction, which in turn was up (22pc) on the previous auction - a factory analysts said impacted on the 3.8pc it fell then.
Although forecasts of lower US milk production could support prices over the coming months, analysts cautioned that signals pointing to slower demand posed a risk.
“Slowing economic conditions in some of our key trading partner economies, including China and some European countries, signal headwinds for prices,” said Satish Ranchhod, senior economist at Westpac Bank in New Zealand, the world’s largest dairy exporter said after the last auction.
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