GDT increases come to an end with 3% decline this week

After four consecutive increases, the upward run of the GDT index came to an end this week when it recorded a 3% decline.

Lorcan Allen

4 October 2016

GDT increases come to an end with 3% decline this week

The fall in this week’s GDT was somewhat predictable given that futures markets for WMP have fallen by more than 8% in the last fortnight.

With close to 34,000t of product offered at this week’s auction, the decline in the GDT was driven by the falling price of whole (WMP) and skimmed (SMP) milk powder.

The average price of WMP declined by almost 4% to $2,680/t, while SMP average prices were also back by 4% to just over $2,200/t. Both WMP and SMP account for almost 75% of all product sold on the GDT.

There were also declines in the price of cheddar (-2%), butter (-0.3%), anhydrous milk fat (-1%) and casein (-4%). The average price of lactose fell by a whopping 10%. The only product to record a lift in its selling price was butter milk powder, which was up by over 9%.

The fall in this week’s GDT was somewhat predictable given that futures markets for WMP have fallen by more than 8% in the last fortnight, suggesting that this week’s GDT event may be a more subdued affair.

Dairy futures market: WMP futures weaken ahead of this week’s GDT