The Global Dairy Trade index, an indicator for determining dairy market sentiment, rose 1.4% at today’s online auction (18 October).
The slight rise still leaves the index 1.6% down on this time last month but 10.8% up on the same period 12 months ago.
The rise was driven by improved sales of whole milk powder (WMP) which bounced back from a poor showing a fortnight ago.
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The fall at the previous auction was strongly attributed to the markets taking stock of four weeks of significant rises that had seen the price of WMP increase by 36%, before it dropped by 4.1% in the last two auctions.
“The market is just levelling out after a small drop in GDT two weeks ago and we’re going to have to wait for the next few auctions to really see any meaningful signals,” said senior analyst at AHDB Dairy, Patty Clayton.
She added, “Prices have been helped by global production falling, and a relative certainty that buyers know what to expect out of the northern hemisphere for the next few months.
“We’re just entering peak production season in New Zealand and bad weather there may also have contributed to the auction creeping up.”
GDT events measure bids from dairy commodities from participants spanning 80 countries around the world, including the EU, New Zealand, Australia, India and the US.