GDT index shows recovery after eight month slump

Published 12 February 19

In the most recent Global Dairy Trade (GDT) auction on 6 February, the all product price index climbed 6.7% and pushed average prices to $3,265/tonne, the highest overall price in nearly eight months. This is the fifth consecutive auction where prices have firmed and therefore recovered some of the losses following the eight month slump in prices between February and November last year.

GDT Index Weighted Average All Price

When breaking it down by product, most products did not firm to the same extent as the all product index. Whole milk powder (WMP) accounts for around half of sold volumes, and as such has a heavy weighting on the overall results. WMP increased by 8.4% since the previous event, helping to boost the all product index.

GDT Index Change (Feb)

While prices moved up, sale volumes moved in the opposite direction. In the 6 February auction, sale volumes were recorded at 23,300 tonnes, a 16% decline compared to the previous sale and the lowest volumes shifted since June 2018.