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Wednesday, December 13, 2017
 Global Dairy Trade (GDT) Auction Prices Rise 3.1%  

Prices in the latest Global Dairy Trade (GDT) auction, the eighth sale of calendar 2017, rose 3.1% following a 1.7% gain previously and this was the third successive gain.

The GDT Price Index climbed with an average selling price of $3,139 per ton, in the auction held April 18th. Whole Milk Powder prices rose 3.5% while Skim Milk prices rose 7.1% from the previous auction.

Prices are still significantly below the levels seen in late 2016 and early 2017, but the ability to move back above 2015 highs will provide some support to sentiment.

Farmers and analysts had been concerned that after two years of declining prices, a 50 percent rebound during 2016 could be temporary since prices were dented at the beginning of the new year as global supply increased.


But heavy flooding in New Zealand, the world's largest dairy exporter, was pointing to tighter supply.


"The recent very poor weather has raised concerns about production in the near term, and this is likely to have given prices a lift," said Satish Ranchhod, Senior Economist at Westpac Bank.


"Although prices remain lower than the levels that we saw in early 2017, they appear to have found a floor," he added.


There were 173 participating bidders competing for the 22,927 tons of product sold at the April 18th auction. The auctions are held twice a month, with the next one scheduled for May 2.

Source: Global Dairy Trade

 


Posted on Friday, April 21, 2017 (Archive on Friday, April 28, 2017)
Posted by bholcomb@adpi.org  Contributed by bholcomb@adpi.org
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