The GDT index slumped to its fifth negative result from the last six dairy auctions this week, as New Zealand butter prices come crashing back down to earth. At this week’s GDT auction in New Zealand, average dairy prices fell almost 3% to just over $3,250/t (€2,900/t).

The decline in the benchmark dairy index was led by another sharp fall in the price of New Zealand butter.

Average butter prices slumped 6% this week to $4,165/t (€3,720/t).

Since the start of May, butter prices traded on the GDT have fallen 25% as New Zealand butter realigns with world market prices.

Of the other dairy commodities traded on the GDT platform, cheddar cheese prices fell 2% this week to $3,840/t (€3,430/t), while anhydrous milk fat prices dropped 5% to $5,245/t (€4,685/t).

On the powders side, the price of whole milk powder (WMP) fell almost 2% to $3,040/t (€2,715/t), while the price of skimmed milk powder (SMP) also dropped 2% to $2,480/t (€2,215/t). Just under 35,000t of product were sold at this week’s GDT.

Closer to home, dairy markets are generally quiet in Europe, as we’re in the middle of the holiday season. According to the Dutch dairy board, the spot price of butter was down a little over 1% this week to €3,400/t.

Spot prices for SMP rose slightly (+1%) to €2,100/t, while WMP prices also gained 1% this week to €2,820/t. European prices for cheddar are steady at €2,900/t.