GDT price stutters with 3% fall

Published 4 October 16

The overall Price Index at the Global Dairy Trade auction fell by 3.0% this week, ending a run of consecutive increases that began in early August. Price Indices fell across all products traded, except for butter milk powder, which rose 9.3%.

Butter and other fat prices had previously been rising rapidly, helping to pull up the overall auction price. However, some New Zealand dairy futures prices are reported to have eased over the last week according to AgriHQ, so the loss of price momentum may not be entirely unexpected.

Despite this week’s decrease, the average weighted price is still nearly 60% higher than it was at its low point last year – today’s average was US$2,880/tonne, compared to US$1,815/tonne in August 2015. 

GDT 4Oct16