The fourth Global Dairy Trade (GDT) of 2016 recorded a drop of 2.8%, making it the fourth consecutive drop in dairy product prices.
It comes after a 7.4% fall on February 2, while the previous two Global Dairy Trade auctions also recorded declines of 1.4% and 1.6% respectively.
This auction saw Rennet Casein the main faller, down 11.5% while cheddar was down 5.6%.
Today’s fall was predicted but was less than predicted by some commentators. Earlier this week, futures trading was pointing to a 10% fall in key whole milk powder prices.
According to New Zealand bank ASB, if said another price fall at the Global Dairy Trade would see it likely revise lower its current season milk price forecast as well as its 2016/17 milk price forecast.
Global Dairy Trade – Key Results
- AMF index up 1.5%, average price US$3,527/MT
- Butter index down 2.3%, average price US$2,834/MT
- BMP index down 1.2%, average price US$1,496/MT
- Ched index down 5.6%, average price US$2,535/MT
- LAC index unchanged, average price US$574/MT
- RenCas index down 11.5%, average price US$3,852/MT
- SMP index down 1.4%, average price US$1,762/MT
- WMP index down 3.7%, average price US$1,890/MT
European Milk Prices
Meanwhile, in Europe, at a meeting of EU Agriculture Ministers it was decide that the March EU Council meeting will discuss the continuing dairy situation in Europe.
EU Agriculture and Rural Development Commissioner Hogan has said the Commission will evaluate ideas which may alleviate the dairy prices situation in Europe and will reflect on what more can be done to alleviate the pressure on our European farmers.