The average Global Dairy Trade (GDT) price index fell by 2.8% according to latest auction results published today (Tuesday, March 19).
There were a total of 152 bidders in the event which saw 19,655MTof product sold.
The average selling price was $3,497 per metric ton in the auction, which lasted for nearly two hours, during which there were 112 winning bidders.
The GDT Price Index now stands at 1,055 today – compared to the previous index figure on March 5, of 1,086.
GDT event
The GDT auction, which is held twice in every month, is seen as a good barometer of the buoyancy of the global dairy market because it indicates supply and demand for key products.
An analysis of the individual product sub-indices from the 352 event today shows that the sharpest drop was a 4.8% fall for skim milk powder (SMP) to an average price of $2,517/MT.
However there were also declines in whole milk powder (WMP), which fell by 4.2% to an average price of $3,143/MT and lactose which fell 4.4% to an average price of $778/MT.
Meanwhile cheddar also dropped by 1.9%to an average price of $4,192/MT while butter fell by 1.4% to an average price of $6,408/MT and mozzarella was also down by 1% to an average price of $3,905/MT.
Only anhydrous milk fat posted an increase of 2.5% in the latest auction to $6,794/MT.
Today’s 2.8% fall in the GDT price index is only the second recent decrease since November 7, 2023.
Rabobank
According to Rabobank’s latest research there are “bright spots on the horizon for improved global dairy prices”.
Specifically in relation to Europe’s dairy markets it said that EU exports may have benefitted from a number of factors including geopolitical developments, but the opportunity is “narrowing due to supply constraints and rising prices”.
Rabobank detailed: “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.”
However generally it is not anticipating “big changes in demand recovery in 2024”.
