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.
In the GDT auction overnight, SMP price rose 3.3% to $US3017/metric tonne, the highest level in five years.
Over the past few years SMP prices struggled due to the high stocks produced in the EU: huge stockpiles of SMP held by EU members have been holding prices down.
In August 2015, SMP prices slumped to US$1419/MT. Around this time last year, SMP was fetching only US$1965/MT.
The EU stocks are now dwindling and due to lower prices manufacturers have directed milk away from SMP into other product mixes, resulting in a shortage.
This has helped SMP prices reach the highest level seen in five years.
The GDT price index for last night’s auction rose 1.7% compared to the previous auction.
Whole milk powder price rose 2.2% to US$3321/MT.
Key results
AMF index down 1.5%, average price US$5,108/MT
Butter index down 1.3%, average price US$4,061/MT
BMP not offered
Ched index up 2.5%, average price US$3,701/MT
LAC index up 1.3%, average price US$775/MT
RenCas index up 5.6%, average price US$7,668/MT
SMP index up 3.3%, average price US$3,017/MT
SWP index not available, average price not available
WMP index up 2.2%, average price US$3,321/MT
