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Global Dairy Trade index drops 10.8%
A second consecutive drop in prices on the Global Dairy Trade auction. The overall index fell 10.8 percent this (Wednesday) morning to 785; the lowest it has been since January 6th.
Compared to the previous sale: butter milk powder was down 25.1 percent, whole milk powder is 13.3 percent lower, cheddar cheese dropped 10.5 percent, skim milk powder declined 9.9 percent, rennet casein fell 8 percent and anhydrous milk fat was down 5.3 percent. No lactose or sweet whey powder was offered.
Volume at the sale was 23,162 metric tons, nearly 3,000 more than offered in the last sale and the most since February 3rd.
After falling most of 2014, the Index rebounded for six consecutive sales from mid-December through early March. That is when Fonterra announced the drought on New Zealand’s South Island was not going to hurt milk production as much as earlier thought and the co-op would offer more product for sale. Additional pressure on prices comes from the end of production quotas in the European Union as of April 1st.
Conducted on the first and third Wednesdays of the month, dairy processors from the U.S., Europe, Asia, India and Oceania offer products on the GDT. The auction is seen as a price discovery mechanism for global dairy prices.
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