This week’s GDT event in New Zealand saw the benchmark dairy index record another marginal decline of 0.4% to an average selling price of $3,300/t. The latest decline in the GDT was driven by a near 5% fall in the average price of skimmed milk powder (SMP) to $2,090/t.

This latest setback for SMP prices was likely impacted by the European Commission’s decision last week to sell 100t of SMP out of intervention for a price of €1,850/t, which was below market prices for the dairy powder.

Mixed bag

On the other side of the powder equation, it was encouraging to see a near 3% increase in the average selling price of whole milk powder (WMP) above $3,110/t. Of the other dairy commodities traded on the GDT, there was a mixed bag.

After some stunning price rises in recent months, there are now signals the butter market is beginning to slow down and this proved no different at this week’s GDT auction, where butter prices were flat at $5,775/t.

Aside from an 11% increase in the price of buttermilk fat, there were declines in selling price for the remaining dairy products. Cheddar prices fell over 3% to $4,050/t, while anhydrous milk fat (-3.5%), lactose (-3%) and casein (-3%) were also down in price.

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