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GDT auction surprisingly higher across the board
Almost a broad recovery and a return of Chinese buyers. The latest GDT auction has been surprisingly positive for New Zealand in particular, but is also better than expected for dairy markets worldwide.
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The average index rose by 4,6%, a figure equal to the increase in the average price for whole milk powder. This product is traditionally the most important and most traded product at the GDT auction.
In four years, such a large amount of dairy has not been produced as this time. Apparently the market can handle it and prices do not have to suffer (for now). Analysts are still cautious and are not immediately crowing victory about the turnaround in this GDT auction. It is nice that Chinese buyers have reasserted themselves, but according to many it is still too early to conclude that China is completely back.