The Global Dairy Trade (GDT) index has recorded a significant fall of 8.5% following its latest trading event which took place yesterday (Tuesday, May 3).
As a result of event 307, the index now stands at 1,379, down from 1,507 following the previous auction of dairy commodities on April 19. It is the fourth consecutive drop in the index.
The price index hit a record high of 1,593 on March 1, this year, but has been on a downwards trajectory ever since.
In total, 132 bidders took part in yesterday’s trading event with 107 of those declared as winning bidders.
There were 19 rounds of bidding during the event, which lasted for two hours and 35 minutes. 25,163MT of produce was sold, with an average price paid of $4,419.
Similar to the previous trading event, all of the dairy commodities offered for sale in yesterday’s auction recorded a drop in weighted average price.
The most significant drop was for butter which fell by 12.5% to $5,807. The price of butter decreased by 3.7% to $6,640 following the auction on April 19.
Anhydrous milk fat (AMF) fell by a considerable 12.1% to $6,008. Cheddar dropped by 8.6% to $5,652 and butter milk powder (BMP), which made a return to the trading event, was down by 6.1% to $4,203.
Whole milk powder (WMP) price ended at $3,916; this is down by 6.5% on the previous trading event while there was a similar drop for skim milk powder (SMP) to $4,130.
Lactose and sweet whey powder (SWP) were not offered for sale during yesterday’s auction.