Global Dairy Trade commodity prices rise third auction in a row

By Mark ASTLEY contact

- Last updated on GMT

Global Dairy Trade commodity prices rise third auction in a row

Related tags: Gdt price index, Milk

Dairy commodity prices rose today the third time running on the Global Dairy Trade (GDT) auction platform. 

The GDT Price Index, a weighted average of percentage changes in dairy commodity prices on the Fonterra-owned platform, increased 16.5% at today’s bi-monthly auction. 

It reported an average selling price of US$2,568 per tonne of product – up from US$2,226 at the last auction on September 1 and US$1,974 on August 18.

Volumes also increased, from 35,865 tonnes on September 1 to 36,050 tonnes.

GDT
The GDT Price Index rose 16.5% at today's auction.

Whole milk powder (WMP) and skim milk powder (SMP), up 20.6% and 17% respectively, drove the Price Index increase.

Prices for anhydrous milk fat (AMF), butter, cheddar, lactose and rennet casein also rose.

Only the average price of butter milk powder (BMP), offered on the platform by Arla Foods and Fonterra, decreased.

On August 18, the GDT Price Index rose for the first time since March.

At the previous auction, on August 4, the Price Index fell 9.3% - a tenth consecutive fall in the price on the platform.

Within days of the August 4 auction, it was announced US dairy giant Land O’Lakes had formally withdrawn from the GDT platform.

Amul (India), Arla Foods (Denmark), Arla Foods Ingredients (Denmark), DairyAmerica (USA), Euroserum (France), Fonterra (New Zealand) and Murray Goulburn (Australia) continue to offer products on the GDT platform.

On August 13, Fonterra reduced its GDT volumes forecast for the next 12 months by 56,045 tonnes.

It said it would cut its offering by 62,930 tonnes over three months, then add 6,885 tonnes on later in the year “in anticipation of changing market conditions.”

Last week, it announced a further reduction of 22,050 tonnes​ – 15,200 over the next three months and 7,850 later in the year.

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