The Global Dairy Trade (GDT) price index rose by 1.6% to 1,002 at its latest trading event today (Tuesday, December 5).
A total 29,559MT was sold today at the 345th trading event which attracted 168 participating bidders – this was down on the last trading event when 34,111MT of product was sold.
The average price today was $3,323 based on a conversion rate of €0.9201 per US$1.
Anhydrous milk fat, butter, butter milk powder, cheddar, lactose, skim milk powder (SMP), and whole milk powder (WMP) were offered at the event.
GDT
The single biggest increase in the price indices was recorded for cheddar with jumped by 9.7% to $3,986/MT at the event which lasted just over two hours and included 14 bidding rounds.
The price index of lactose also increased by 5.3% to $793/MT while the priceindex of butter milk powder rose by 2.8% to $2,387/MT.
Meanwhile the price index of WMP rose by 2.1% to $3,104/MT and the price index of SMP also saw an increase of 1.2% to $2,671/MT.
However there was a more disappointing performance for the price index for butter which increased by just 0.7% to $4,936/MT and the price index of anhydrous milk fat did not move at $5,573/MT.
The next GDT trading event is scheduled to take place on December, 19.
Dairy commodity prices
Meanwhile a new report from Rabobank today outlined that there is growing evidence that the bottom in the dairy commodity markets has passed, but a “slow recovery” is likely as prices move back to long term averages.
The bank’s latest Global Dairy Quarterly report highlights that limited milk supply growth and “lackluster” demand led to soft commodity pricing this year but the bank expects prices to “move higher” next year.
EU dairy commodity prices have strengthened from mid-August to mid-November it also noted.
Rabobank said any recovery in commodity prices will be against a backdrop of “geopolitical instability risks, volatile energy markets and weak macroeconomic conditions”.