News Dairy
Volume demands attention with higher Global Dairy Trade
The Global Dairy Trade has finally shown a better side again, after recent auction sessions were dominated by price reductions. The high traded volume is perhaps an even bigger surprise.
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The increase of 2,7% overall is the first since early May. After that, the trendsetting dairy auction was almost always dominated by negativity and, on balance, a lot of ground was lost. The GDT was particularly badly hit during the last auction in mid-August, with a decline of 7,4%.
The market now seems to be recovering from this, as many manufacturers are moving upwards. Whole milk powder even rose by 5,5% to $2.702 per tonne. Skimmed milk powder has to make up some extra money and drops to just $2.300 per tonne. On the other hand, positives are visible for butter, AMF and cheddar.
High volume
It is striking that the traded volume increased to 37.729 tonnes. This is the highest volume since September 2019, but was in line with what Fonterra, the main provider, had announced. It also shows that there is still a need for dairy somewhere on a global scale, although the market has felt weak recently. However, China was not the main buyer, although the country was back at the auction. Buyers in the rest of Asia and the Middle East drove the most movement.