GDT lift ‘expected to feed through into upcoming milk prices’
The latest lift in the Global Dairy Trade (GDT) index is expected to “feed through” into milk price announcements for September supplies, according to the Irish Creamery Milk Suppliers’ Association (ICMSA).
Commenting on the latest auction, which saw the overall GDT index rise by 2.2%, ICMSA Dairy Committee chairman Ger Quain said that the “slow but steady” return to normal trading conditions is continuing.
The sharp upturn in butter and butter milk powder is a positive development, he added.
We think that overall dairy prices will stabilise through the fourth quarter of 2020 and that – absent a massive destructive Covid-19 resurgence – prices should be around the 32c/L mark.
“We expect that to continue with the round of announcements beginning next week.
“Attention should now switch to ensuring that the best possible trading Brexit agreement is secured and that our multi-billion Euro dairy exports to Britain can be retained and even built on,” Quain said.
GDT records back-to-back lifts
The latest GDT auction – event 269 – concluded this afternoon (Tuesday, October 6) with the GDT Price Index up 2.2%.
Lasting two hours and 34 minutes, today’s event saw 190 participating bidders take part. Following 17 bidding rounds, 135 winning bidders emerged.
Today’s event marks back-to-back increases following four consecutive decreases in recent months. Of these, three were relatively small drops – which followed a spike of 8.3% back in July.