The Global Dairy Trade online commodity auction saw an overall 3.5% drop in its price index at Tuesday’s sale (7 November), with a weighted average price of US$ 3,105 (£2,388/t).
This was the 199th in the series of fortnightly New Zealand-based auctions. The price index fell to 1,005, well up on a year earlier when it was at 771, but a large enough drop to inject a little more uncertainty into dairy markets.
The fall was led by whole milk powder prices, which went down 5.5%, with butter losing 3.6% and cheddar falling by 2.8%.
Continental wholesale prices due out on Wednesday (8 November) will give a further indication of trade sentiment as we enter what should be a period of rising demand as retailers begin the Christmas stock-up.
GDT dairy commodity prices
- Anhydrous milk powder index up 0.5% – average price US$6,894/t (£5,303/t)
- Butter index down 3.6% – average price US$5,516/t (£4,243/t)
- Butter milk powder index up 7.2% – average price US$1,931/t (£1,485/t)
- Cheddar index down 2.8% – average price US$4,001/t (£3,078/t)
- LAC index not available
- RenCas index down 4.0% – average price US$5,465/t (£4,204/t)
- Skim milk powder index up 1.2% – average price US$1,818/t (£1,398/t)
- Whole milk powder index down 5.5% – average price US$2,852/t (£2,194/t)