GDT dairy auction prices fall

This week’s Fonterra’s Global Dairy Trade (GDT) online auction saw mixed results, with a 3.1% drop overall.

All commodities except anhydrous milk fat, buttermilk powder and rennet casein fell in price (see below). Butter recorded the biggest drop (11.1%), after a 13% rose at the previous sale.

The drop to a weighted average across all commodities of US$2,735/t (£1,767/t) follows three consecutive rises in the average price at the wholesale auction.

See also: Low milk prices threaten productive capacity

Volume remained low at 34,519t, compared with almost 51,000t at the 15 October 2014 sale.

GDT auction 20 October 2015 – results

• Butter – index down 11.1% – weighted average selling price US$2,850/t (£1,842/t)
• Cheddar – index down 2.2% – weighted average selling price US$3,163/t (£2,044/t)
• Anhydrous milk fat – index up 2.4% – weighted average selling price US$3,856/t (£2,492/t)
• Buttermilk powder- index up 3.2% – weighted average selling price US$2,064/t (£1,334/t)
• Skim milk powder –  index down 4.5% – weighted average selling price US$2,178/t (£1,407/t)
• Whole milk powder – index down 4.6% – weighted average selling price US$2,694/t (£1,741/t)
• Rennet casein – index up 2.1% – weighted average selling price US$6,178/t (£3,992)
• Lactose – index down 3.8% – weighted average selling price US$507/t (£328/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.