GDT hops up another 16.5%

Published 15 September 15

The Global Dairy Trade (GDT) auction overall Price Index increased 16.5% today (15 September), its third consecutive rise.

Prices are likely to have been partly supported by the lower total volume offered, which was around 7% lower than the 5-year average for the second auction in September. There may also have been a boost to demand as Chinese buyers tend to come into the market at this time of year to fill import quota allowances, according to Rabobank. 

However, global supplies have not reduced – milk production is still strong across the major dairy exporting regions. Therefore, while this is positive news and wholesale prices may react in the short term, rebalancing of supply and demand at a global level is still the key factor needed for market recovery.

GDT 15Sep15