Analysis Global Dairy Trade
Dairy prices jump at GDT anniversary
Dairy prices rose unexpectedly at the first Global Dairy Trade of the year. This gives the 300th auction edition - which is organized every two weeks by the New Zealand dairy cooperative Fonterra - an extra touch.
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The increase in the price of butter stands out. The GDT quotation rises by 5% to $6.158 per tonne. The plus is striking, given that butter prices in Europe are currently quite considerable under pressure to stand. The development at the GDT may provide a new impetus.
Milk powders significantly higher
Milk powders are also significantly higher. Like butter, skimmed milk powder also rose 5% to $3.963 per tonne. Since the summer, the listing has been on the rise non-stop and several price records have already been broken. The psychological limit of $4.000 is within reach. Whole milk powder, the basis for Fonterra's milk price, which is heading for a record this year, even rose by 5,6% to $4.082 per tonne. The good news does not stop there, because cheddar (+1,1% to $5,546) and AMF (+0,6% to $6.720) are also trading higher.
The average price index rose by 4,6% on balance to $4,463 per tonne. This is the highest level since mid-2015. The volume traded this edition was just over 30.000 tons, which is quite common. The positive undertone on the GDT indicates that the appetite for dairy remains as great as ever.
Since 2008
Since 2008, dairy products have been traded twice a month on the GDT platform. Over the years, the auction has developed into an important indicator of global sentiment. The dairy companies that currently offer the products are: Fonterra, Dairy America, the Indian Amul, Arla, Arla Foods Ingredients and Polish Dairy.