GDT suggests stalemate in the market?

Published 4 May 16

Since February of this year, weighted average prices for all products sold on the Global Dairy Trade (GDT) auction have started to trade within a much narrower range between approximately $2,200 and $2,300 per tonne. However, overall, the underlying trend continues to move downwards with the latest result seeing the price index fall by 1.4% following on from the two previous auctions seeing small increases. Given the recent slowdown in price declines, as well as prices and auction averages aligning more closely, it would seem the market is close to, if not at, the bottom. Traders are no doubt waiting to see how milk production develops in the Northern Hemisphere over the flush and maybe the start of the Southern Hemisphere’s climb before committing too much to market.

GDT averages May 2016