Milk volume expectations play a role in auction results

Published 16 November 16

A shift in market sentiment following events in New Zealand is likely to have played a role in the trend of rising prices recorded at recent GDT events. Global dairy commodity prices have increased over the past few months as the global over-supply situation has eased, with the GDT Index rising by over 40% since August.

Recent results however are likely to have been inflated by trader sentiment in a similar fashion to what happened following Fonterra’s announcement of reduced stock availability prior to the 16 August auction. The recent downgrading of this season’s production by Fonterra and the (as yet uncertain) impacts of the recent earthquake are likely to have accelerated the price reactions. 

Change in GDT Index