GDT nosedives to year-low price index in latest dairy auction

The latest Global Dairy Trade (GDT) auction in New Zealand has seen the index price take a severe nosedive. Today’s auction, event 202, suffered a decrease of 3.9% – the biggest drop in price this year.

This drop in index is the fifth decrease in the last six offerings, following a slight increase in the last auction on December 5.

With an index of 935, the GDT is currently the lowest it has been since October 2016.

All available products offered on the day were down in price. Cheddar and Anhydrous Milk Fat (AMF) were the big losers on the day, getting hit with decreases of 7.9% and 6.7% respectively.

Key results:
  • AMF index down 6.7%, average price US$6,392/MT;
  • Butter index down 2.3%, average price US$4,474/MT;
  • BMP not offered;
  • Ched index down 7.9%, average price US$3,389/MT;
  • LAC index not available, average price not available;
  • RenCas index down 6.3%, average price US$4,506/MT;
  • SMP index down 4.8%, average price US$1,675/MT;
  • WMP index down 2.5%, average price US$2,755/MT.

Butter Milk Powder (BMP) was not offered on the day and the index for lactose (LAC) was not available.

Today’s event lasted for exactly two hours across 13 bidding rounds. There were 139 winning bidders out of the 509 that registered.

GDT
Image source: Global Dairy Trade

Ornua signs off on €610 million bank facilities

Meanwhile, new €610 million bank facilities have been signed by Ornua in order to support continued dairy industry growth.

These five-year syndicated bank facilities are set to replace the existing €420 million syndicated bank facilities from February 2014.

The new facilities are set to extend to November 2022 and Ornua’s early refinancing of the existing facilities is understood to have taken advantage of positive bank market conditions.