GDT price index falls 2.8%
HOPES of future milk price rises slipped further on Tuesday, when the average Global Dairy Trade (GDT) price index fell by 2.8%.
The latest auction results revealed a total of 152 bidders were at the event which saw 19,655m tonnes of product sold with an average selling price of $3497 per metric tonne.
The GDT price index of 1055, is down 31 from the previous index figure of 1086 at the last GDT auction.
Skimmed milk powder (SMP) recorded the greatest fall at down 4.8% to average $2517/mt
Whole milk powder (WMP) also fell by 4.2% to average $3143/mt while lactose slipped 4.4% to an average price of $778/mt.
Meanwhile cheddar dropped 1.9% to average $4192/mt while butter and mozzarella were both down by 1.4% and 1% to level at $6408/mt and $3905/mt respectively.
In contrast, anhydrous milk fat values improved by 2.5% to average $6794/mt.
On a more optimistic note, the 2.8% fall in the GDT price index is only the second decrease since November 7, 2023
Today’s 2.8% fall in the GDT price index and Rabobank’s latest research claims: “bright spots on the horizon for improved global dairy prices.”
It pointed out that Europe’s dairy exports could benefit from geopolitical developments, but the opportunity is narrowing due to supply constraints and rising prices. “Supply and demand fundamentals suggest there is room for firmer prices in the months ahead but milk production will seasonally increase in quarter two, increasing product availability,” the report stated.
However, Rabobank is not expecting big changes in demand recovery in 2024.