Global Dairy Trade jumps 4.5%
The Global Dairy Trade (GDT), an indicator of international dairy market sentiment, climbed 4.5% to its highest level since July 2014 at today’s (15 November) auction.
The result leaves the index 51.2% up on the same time 12 months ago, strengthened by seven increases in the last eight auctions, including an 11.4% rise two weeks ago.
The average weighted price now stands at USD$3,519t (£2,835.8/t).
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All eight commodities traded at the latest auction (15 November) increased in price, with whole milk powder (WMP) and skim milk powder (SMP) again performing strongly.
Milk powders
- WMP, which accounted for almost half of all sales, rose 3.2% to $3,423/t (£2,764/t).
- SMP price also sold in large volumes, hitting $2,562/t (£2,068.7/t) following a 9.8% rise.
Earthquakes
Analysts had anticipated a rise in the index, with the earthquakes in New Zealand recently expected to affect supply.
The auction is seen as a more influential indicator in the winter months, when New Zealand milk production vastly outweighs that of the EU.
GDT events measure bids from dairy commodities from participants spanning 80 countries around the world, including the EU, New Zealand, Australia, India and the US.