Milk powder on a spoon© Rex

This week’s Fonterra’s Global Dairy Trade (GDT) online auction saw most commodities fall in price, with a 7.9% drop overall.

All commodities except butter fell in price (see below). Whole milk powder recorded the biggest drop (11.0%). The butter index rose 5.6% from 740 to 781.

The drop to a weighted average across all commodities of US$2,345/t (£1,541/t) is the third consecutive fall in the average price at the wholesale auction, following four consecutive rises in the previous months.

The overall GDT index is now 692, the lowest It has been since the sale on 15 September 2015.

Volume remained low at 30,044t, compared with almost 40,000t at the 18 November 2014 sale.

GDT auction 18 November 2015 – results

  • Butter – index up 5.6% – weighted average selling price US$2,709/t (£1,780/t)
  • Cheddar – index down 5.0% – weighted average selling price US$2,874/t (£1,889/t)
  • Anhydrous milk fat – index down 5.9% – weighted average selling price US$3,430/t (£2,254/t)
  • Buttermilk powder- index down 1.0% – weighted average selling price US$1,825/t (£1,199/t)
  • Skim milk powder – index down 8.1% – weighted average selling price US$1,851/t (£1,216/t)
  • Whole milk powder – index down 11.0% – weighted average selling price US$2,148/t (£1,412/t)
  • Rennet casein – index down 4.4% – weighted average selling price US$5,250/t (£3,450/t)
  • Lactose – index down 2.0% – weighted average selling price US$503/t (£331/t)

The Global Dairy Trade online auction is owned by New Zealand co-op Fonterra. It holds two online auctions each month, with dairies from Europe, India, the US, New Zealand and Australia selling commodities to 650 buyers from more than 90 countries.

 People throughout the industry took to Twitter to discuss the fall in GDT Price Index.