Five rises in a row for GDT auction average

The Global Dairy Trade index, an indicator of market sentiment, increased for the fifth consecutive auction on Tuesday (16 May), climbing by 3.2%.

The rise took the New Zealand based online auction average price to $3,313/t (£2,559/t), equivalent to 26.4p/litre.

The index has grown 9.4% since the last fall on 7 March, taking it to its highest level for almost three years.

See also: UK adds to EU SMP stockpile for first time in 2017

Butter continued its strong performance, increasing by 11.2% to average $5,479/t (£4,232/t), reflecting growing global fat commodity prices.

There were also strong showings for anhydrous milk fat (AMF) and buttermilk powder, which increased by 8.2% and 9.0%, respectively.

Global shortages and high demand for milk fat products have continued to see prices rise, with no signs of them slowing down.  

Milk powders

The auction’s two most-traded commodities, whole milk powder (WMP) and skim milk powder (SMP) both made modest gains.

WMP defied predictions and edged up 1.3% to average $3,312/t (2,559/t), while SMP continued its recent yo-yoing, wiping out last fortnight’s 0.9% drop to finish 1.3% up, averaging $1,998/t (£1,543/t).

Despite the slight increase, SMP remains weak compared with other commodities and was 18.9% down in April 2017 compared with the start of the year at £1,500/t, according to AHDB Dairy.

Five auctions of strong demand and sustained index rises have boosted confidence in the dairy market and improved sentiment.

 

Upcoming webinar

SEPTEMBER
30

What does the future of farming look like post Covid-19 and Brexit?

Register today