Global Dairy Trade (GDT) has today (Friday, September 1) announced that Fonterra plans to widen its product range on GDT Pulse for the remainder of the pilot period.
Starting in October 2023, Fonterra will introduce both instant whole milk powder (WMP) and skim milk powder (SMP), in addition to the whole milk powder regular contract period 2 which is currently being offered.
This expansion is expected to attract more participants and further enhance market liquidity, according to GDT.
GDT Pulse
Since its joint launch by GDT and Fonterra around a year ago, the pilot version of GDT Pulse has sought to expand GDT’s service offering for buyers and sellers by facilitating more frequent price discovery.
Up to mid-July, 26 auctions had been conducted on the platform, with 25,427MT of product sold, amounting to a cumulative value of almost $83 million.
The average clearance rate for the products offered on GDT Pulse stands at 97.8%.
The auctions have typically consisted of an average of eight bidding rounds, with a total auction duration averaging 17 minutes.
On average, each auction has attracted the participation of 30 bidders, out of which an average of 15 have emerged as winning bidders.
If the pilot is deemed successful, GDT will consider investing in platform upgrades to ensure scalability and explore the possibility of offering more auctions.
The platform also aims to broaden its scope by inviting other sellers to offer their products, promoting increased diversity and expanding market opportunities for buyers.
Meanwhile, the GDT index dropped to levels last seen in November of 2018 following the most recent trading event on August 15.
The auction, during which 33,580MT of product was sold, resulted in a significant fall of 7.4% in the index.
Of the products that were offered at the event, WMP took the biggest hit, with that sub-index plunging by 10.9%, reflecting an average price of $2,548/MT.