After four consecutive auctions of decline, the GDT index finally returned a positive result for the first time this year with the benchmark dairy index creeping up slightly by 1.4%. Despite the positive result, the index still remains at its weakest point since last September when dairy markets were at their lowest ebb in years.

The average price of product sold at this latest auction rose to $2,253/t, with improvements in price for both milk powders, casein and lactose. All other products recorded a decline in the average selling price.

Although casein prices improved the most dramatically, up by almost 15% from the last auction, the uplift in the dairy index was driven by the improvement in prices for both whole milk powder (WMP) and skimmed milk powder (SMP). Both powders are the key commodities traded on the GDT and account for the bulk of product sold via the auction platform.

WMP prices improved by 5.5% to more than $1,970/t, while SMP prices edged up by a marginal 1.3% to a little over $1,800/t. Butter prices were relatively steady recording a marginal decline of 0.5% in value, while cheddar also held somewhat firm as prices eased back by 0.7% to just under $2,530/t.

The volume of product sold at this week’s GDT remains low, although there is a tendency for volumes traded at the New Zealand auction to begin to ease as we enter the spring period. At this latest event, just under 21,900 tonnes were sold via the auction platform, which is in line with this time 12 months ago but significantly back from the 42,000 tonnes sold this time two years ago.

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