Analysis dairy business
GDT will maintain positive sentiment for a while
The positive sentiment on the dairy market will continue for a while, if the GDT auction is any indicator of that. The average sales price no longer increased by the same percentage as in the previous auction, but there was still a positive result with an average increase of 1,7%.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
Not everyone in the dairy sector had dared to hope for that. The limited supply of product probably also played a role in this. With a traded volume of 17.637 tonnes, the smallest supply came before the clock since the beginning of May 2020.
In New Zealand it is said to be the first auction of the new sales season, but American and European products were also traded. It was striking that for several products - not all - the highest prices were recorded for short-term delivery.
The largest price increase this time was recorded for one of the smallest products; buttermilk powder, which was sold 10,4% more expensive. Among the major product flows, it was skimmed milk powder that rose the most in price. Here the average sales price increased by 3%.
The price of whole milk powder, by default the largest product at the GDT, increased by the same percentage as the entire GDT auction. Namely by 1,7%.
Butter and butter oil remain, just as in Europe, the most expensive commodities at the auction, with the striking fact that New Zealand products fetch higher prices for short-term delivery than European products. For deliveries in September and later, the picture rotates.