Price index drops by 1.6% at latest GDT auction

The overall price index has dropped by 1.6% at the latest Global Dairy Trade (GDT) auction held today, August 1.

This comes after the index returned to positive figures at the GDT event on July 18, increasing by 0.2%. That followed on from two consecutive decreases of 0.4% on July 4 and 0.8% on June 20 respectively.

There was a total of 129 winning bidders out of the 521 that were registered. The auction lasted for a little more than two hours across 14 bidding rounds.

Reductions were witnessed across most categories, with just butter milk powder (BMP) and whole milk powder (WMP) price indices reporting marginal increases.

The price index for WMP increased by 1.3%, while the index for BMP rose by a more modest 0.4%.

Key Results:

  • AMF index down 4.9%, average price US$6,289/MT;
  • Butter index down 4.9%, average price US$5,747/MT;
  • BMP index up 0.4%, average price US$2,198/MT;
  • Ched index down 4.8%, average price US$3,932/MT;
  • LAC index down 4.3%, average price US$787/MT;
  • RenCas index down 4.4%, average price US$6,122/MT;
  • SMP index down 3.0%, average price US$1,966/MT;
  • WMP index up 1.3%, average price US$3,155/MT.

However, the butter index fell by 4.9% at the latest GDT auction. Similarly, the cheddar index dropped by 4.8%. Skimmed milk powder (SMP) saw its price index fall by 3% at today’s event.

This is the biggest overall decrease in the price index at a GDT auction in the past five months; the index fell by a dramatic 6.3% on March 7, 2017.

Image source: GDT