Is there any stopping the GDT auction?

Published 6 October 15

The latest Global Dairy Trade (GDT) auction price index increased yet again, up 9.9% compared to the last auction. This takes the average weighted price to the highest it has been since March this year, at US$2,834/tonne.

The continuation in positive auction results have occurred at the same time as encouraging production forecasts coming out of New Zealand. Fonterra previously expected milk production this season (Jun-May) to fall by 2-3% but revised this recently to 5%. If this is consistent with other NZ processors (with Fonterra accounting for approx. 80% of NZ processing) it could see the country’s milk production fall by just over 1bn litres.

Hopefully this positivity will continue and venture further into the wholesale markets, providing support to farmgate prices in the process.

GDT graph 06.10.15