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 2.4% compared to the previous auction; flagship whole milk powder price was down 2.7% to US$3037/MT.
The futures market had predicted a 6% rise in WMP prices.
Westpac senior market strategist Imre Speizer says the GDT result was disappointing.
“GDT dairy auction saw prices fall 2.4% overall, with whole milk powder down 2.7% - a disappointing result given futures markets had earlier priced a 6% rise,” he says
The overnight auction also saw fat prices ease from their record highs.
Key results
AMF index down 3.4%, average price US$6,504/MT
Butter index down 3.6%, average price US$5,837/MT
BMP index down 10.3%, average price US$1,804/MT
Ched index up 1.9%, average price US$4,109/MT
LAC index not available, average price not available
RenCas index up 0.9%, average price US$6,123/MT
SMP index down 1.4%, average price US$1,895/MT
WMP index down 2.7%, average price US$3,037/MT
