Global Dairy Trade price index sees huge jump
© Tim Scrivener The Global Dairy Trade (GDT) price index, a measure of international milk commodity prices, has risen by 13% in the past two weeks.
Strong whole milk powder prices have driven GDT increases to the highest level since October last year, accounting for about half of the sales at the latest event (16 August).
The increase is the second consecutive significant rise after three previous sales where the price index barely moved.
See also: Meadow Foods registers huge “B” milk price increases
However, GDT stands at just over 50% of where it was in April 2013.
“We’re witnessing some really promising figures moving forward,” said AHDB senior analyst Luke Crossman.
“Increases have been strong across the six contract periods, which is a good indicator that those trading on the GDT believe the market is heading.”
He said it was important to view these figures with prudence: “Obviously we aren’t going to see 13% milk price increases based on this result.
“But looking at these figures alongside other information is a great indication of current positive market sentiment.”
The fortnightly GDT events measure bids from dairy commodities from participants spanning 80 countries around the world, including New Zealand, Australia, India and the US.