Global Dairy Trade falls for the fifth consecutive time

The sentiment at the Global Dairy Trade auction remains subdued. This week, the auction index fell for the fifth consecutive time. Only one product noted higher prices. However, the total supply was slightly smaller this time than at the previous auction, but it seems too early to say that the supply peak has now passed. In a rare moment of confusion, the GDT initially recorded a higher index, but this was due to a technical issue that was later resolved. The index fell by 1.4%, and the total supply that came for auction was almost 1,400 tons smaller than two weeks ago. With a total volume of 40,621 tons, there was still a large supply that changed hands. The main products - whole and skim milk powders - continued to see prices under moderate pressure. Light price declines were also recorded for butter and cheddar. The major 'loser' was once again cheddar. Its average selling price fell by 5.3% to a price of €2,771 per ton. This will further increase pressure on the market as a whole, particularly in Europe. AMF up The price of AMF/butter oil was the only one to increase, by 1.5%. For the European market, this has little significance for now, as a price of converted €6,039 per ton is still relatively low for that market. It is noteworthy that European butter is being sold on the GDT significantly cheaper than New Zealand product. There is a price difference of about €800 per ton. Therefore, New Zealand product no longer needs to put pressure on the European butter market. American product is still cheaper than EU butter.