The Global Dairy Trade (GDT) index has seen a significant fall of 7.4% following the latest trading event today (Tuesday, August 15).
The index figure now stands at 850, the lowest index figure since November of 2018.
33,580MT of product was sold today, at an average price of $2,875/MT.
159 bidders participated across 20 bidding rounds in an event that lasted two hours and 31 minutes, with 125 winning bidders emerging.
Of the products that were offered at this event, whole milk powder (WMP) took the biggest hit, with that sub-index plunging by 10.9%, reflecting an average price of $2,548/MT.
The sub-indices fell by over 5% for two other products.
The anhydrous milk fat (AMF) sub-index fell by 5.3%, for an average price of $4,452/MT, while the skim milk powder (SMP) sub-index fell by 5.2%, for an average price of $2,333/MT.
The butter sub-index also fell back, by 3% for an average price of $4,539/MT.
Cheddar was the only sub-index that saw an increase today, rising by 5.8%, reflecting an average price of $4,127/MT.
No data was provided for the butter milk powder (BMP) sub-index, while lactose was not offered at this event.
Of the 12 most recent GDT auction events (including today’s), the overall index has fallen on nine occasions; increased on only two; and seen no change on one occasion.
The latest GDT results reflect ongoing challenges in dairy markets.
Last week, Ornua confirmed its purchase price index (PPI) for the month of July.
Ornua confirmed last Thursday (August 10) that the latest PPI figure is 121.3, down from 124 for the previous month.
When accounting for estimated co-op processing costs of 7.5c/L (including an energy cost element that varies month-to-month depending on energy costs) for the Ornua product portfolio, and excluding any allowance for processor margins, the latest PPI figure implies an indicative milk price return of 35.9c/L, including VAT.
This is 0.8c lower than the price for June, which stood at 36.7c/L.