The penultimate Global Dairy Trade (GDT) auction of 2024 has seen the trade index increase for the third auction in a row.
The GDT index increased by 1.2%, and now sits at 1,254, the highest figure since July 5, 2022, when the index stood at 1,287.
Of the last 12 GDT events (including today’s), stretching back to June 18, the index has increased on eight occasions and decreased on four occasions.
In that time, the largest rate of increase has been 5.5% (August 20) and the largest rate of decrease has been 6.9% (July 2).
The latest index figure reflects an average price of €3,990/metric tonne (mt).
Today’s auction event – number 369 – saw 125 winning bidder emerge from 175 participating bidders, after two hours and 25 minutes and 16 bidding rounds.
The quantity of product sold was 33,630mt.
However, looking at the sub-indices for the eight product types, six of them, including butter and cheddar, decreased. Only a strong increase for lactose and, to a lesser degree whole milk powder (WMP), brought up the overall index.
The index for lactose increased by 7.7%, reflecting an average price of €866/mt, while WMP increased by 4.1%, for an average price of €2,710/mt.
On the flip side, butter slipped back by 5.2%, for a price of €6,357/mt, while cheddar fell by 3.2% reflecting a price of €4,463/mt.
Mozzarella also saw a notable decrease of 4.5%, for a price of €3,921/mt.
Butter Milk Powder (BMP) fell back by 2.6%, for a price of €3,000/mt and skim milk powder (SMP) fell by 1%, reflecting a price of €2,710/mt.
Finally, anhydrous milk fat (AMF) decreased by 0.5%, for a price €7,217/mt.
Dairy outlook
In other dairy markets news, milk production in the EU is forecast to grow by 0.5% year-on-year in 2025 because of enhanced margins, according to a report from Rabobank.
However, the latest RaboResearch global dairy market report also highlights that “headwinds could arise from low soil moisture and bluetongue disease” in the EU next year.
In general, milk production growth across Europe in 2024 was “mixed”, following a wet spring across most of northwestern Europe.
“Weather improvements plus escalating farmgate milk prices are providing optimism for the sector in 2025,” the report said.
“RaboResearch forecasts a 0.3% year-on-year gain in 2024 followed by a 0.5% increase in 2025,” the report added.