News Global Dairy Trade
Global Dairy Trade: Dairy market continues to slide
Dairy prices on the Global Dairy Trade were again markedly downgraded today (October 18). Skimmed milk powder in particular gets a lot of use. The result confirms the weak sentiment that has plagued the dairy market for some time.
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It was more or less certain prior to the auction that the quotations on the Global Dairy Trade (GDT) would end in the red. The main question was how hard the blow would be. With an average price drop of 4,6%, this can be called quite strong. This development also does not help the rather fragile sentiment on the European dairy market.
Listings down
The GDT quotation for skimmed milk powder falls by 6,9% to $3.250 per tonne. This is the lowest level in more than a year. Whole milk powder also recorded a strong minus of 4,4% to $3.421 per tonne. Skimmed milk powder has now dropped below the price of whole milk again, as is logically expected.
The overstressed market ensured that the roles were temporarily reversed in recent months. The price drop of 2,6%, which brings the butter price back to $4.851 per tonne, is more moderate. Cheddar, on the other hand, also takes a heavy hit, falling 3,9% to $4.769 per tonne. Much of the profit from the recent rally in the dairy market has already evaporated.
Recession fears and growing seasonal supply in Northwestern Europe and the United States are the basis of the price drops. This does not detract much from the traded volume, which at just under 30.000 tons shows no deviations.