The Global Dairy Trade (GDT) index has recorded its fourth consecutive decrease, after falling by 4.7% in the latest trading event today (Tuesday, April 4).
The last time the index saw a similar decrease was on October 18 last, when it fell by 4.6%.
The average price for products sold today was $3,227/MT.
This reflects an index figure of 964. This is the lowest index figure since November of 2020, and the first time since then that the index has been less than four figures.
138 bidders participated across 17 bidding rounds, with 117 winning bidders emerging.
The event lasted two hours and 15 minutes, and the total quantity of product sold was 23,828MT.
All but one of the products offered at the event saw decreases in their respective sub-indices.
The largest decrease was for anhydrous milk fat (AMF), which fell by 7.2%, recording a price of $4,736/MT.
Whole milk powder (WMP) also saw a significant drop, with its sub-index falling by 5.2%, for a price of $3,053/MT.
Butter and butter milk powder (BMP) both fell back by 3.3%, for prices of $4,595/MT and $2,529/MT respectively.
Skim milk powder (SMP) saw a decrease of 2.5%, for a price of $2,579/MT.
The cheddar sub-index was the only one to record an increase, recording a 3.8% boost for a price of $4,167/MT.
The results for this trading event did not include data for lactose.
In related news, the New Zealand co-operative Fonterra – one of the owners of the GDT – has again cut its forecasted farmgate milk price for the 2022/2023 season due to a drop in dairy demand from China, along with the northern hemisphere entering peak milk production.
The business confirmed that its forecasted milk price range for the season will drop to NZ$8.00/kg of milk solids to NZ$8.60/kg, with a midpoint of NZ$8.30/kg.
The previous forecast, announced in February, was NZ$8.20/kg to NZ8.80/kg, with a midpoint of NZ$8.50/kg.
Fonterra chief executive Miles Hurrell said that the decision reflects short-term demand for dairy products, which are used by the co-op to set the milk price, being “softer than expected”.
“Since our last update in February, prices for our products on the Global Dairy Trade have either declined or remained flat,” Hurrell commented.