Middle East demand cushions global dairy price drop at latest GDT auction
The upheaval in the Middle East may have eased the fall in global dairy prices last week.
The GDT price index was down 2.6%, compared to the previous auction, which had seen a 2.7% lift in the price index.
Worryingly for farmers, there was a 1.7% fall in whole milk powder prices. Prices for AMF and butter were also down, falling by more than 5%.
Westpac economists note that although not a large decline, one possible explanation could be China’s weakening of its currency in response to the US-China trade war.
Key results
AMF index down 5.1%, average price US$5,246/MT
Butter index down 5.5%, average price US$4,165/MT
BMP index down 5.6%, average price US$2,405/MT
Ched index down 2.0%, average price US$3,838/MT
LAC index down 11.5%, average price US$767/MT
RenCas index down 1.3%, average price US$6,885/MT
SMP index down 1.6%, average price US$2,482/MT
SWP index not available, average price not available
WMP index down 1.7%, average price US$3,039/MT
