GDT recovers slightly in latest auction

The recent downward trend has been halted at today’s Global Dairy Trade (GDT) auction, Event 201, as the price index rose slightly by 0.4% on last month.

This slight reprieve in index price follows four consecutive decreases in recent GDT events, with sharp drops of 3.4% and 3.7% recorded during the month of November.

Key results:
  • AMF index down 0.6%, average price US$6,836/MT;
  • Butter index down 11.1%, average price US$4,575/MT;
  • BMP index up 4.3%, average price US$1,957/MT;
  • Ched index down 3.9%, average price US$3,696/MT;
  • LAC index not available, average price not available;
  • RenCas index up 3.4%, average price US$4,879/MT;
  • SMP index up 4.7%, average price US$1,774/MT;
  • WMP index up 1.7%, average price US$2,830/MT.

The most dramatic change seen on the day was undoubtedly the butter index, which fell by a severe 11.1% while cheddar took a tumble of 4.3%.

Apart from these, other indexes showed largely positive moves, with skimmed milk powder (SMP) in particular rising by 4.7%.

Lactose (LAC) was not offered on the day.

GDT
Image source: Global Dairy Trade

Today’s auction lasted just one minute short of two hours, taking place over 13 bidding rounds. 160 bidders took part, of which 123 were winning bidders.

SMP intervention

On the topic of skimmed milk powder, EU Commissioner for Agriculture and Rural Development Phil Hogan has said the European Commission needs to avoid buying in SMP stocks under intervention next year, without due market justification.

The commissioner made the comments as he addressed the Food Wise Conference in Croke Park yesterday (Monday, December 4).

During his address to the conference, he said: “When it comes to the issue of skimmed milk powder (SMP) stocks, we have to manage our public intervention from two angles.

“First, how to realistically proceed with the release of the existing stocks – because the stocks have to be sold at some stage. Second, how to prevent any further build up next year and to do it in a way that we can manage the market for the farmer.

In relation to SMP stocks, the product has to be sold. But we also need to avoid buying in under public intervention next year without due market justification.

“The European Union does not exist just to provide another outlet for a product for which a commercial market cannot be found – that’s your job,” Commissioner Hogan said.