Archive: Latest GDT auction shows rise in average price

Published 18 December 14

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The latest Global Dairy Trade auction, held on 16 December, saw the average weighted price rise by 2.4% to US$2,609/tonne. The overall declining trend throughout 2014 appears to be flattening out, but with current seasonal demand playing a part. Butter has shown some positive signs with strong increases over the last three auctions, rising by 10.4% to $3,145/tonne at this week’s event. This is the highest average butter price since June this year.

WMP showed a marginal price increase this week while SMP fell by 3.2%. The forecast volumes of WMP for the next three auctions have decreased so, given WMP’s recent strong negative price influence, this could potentially help support the average price. With world wholesale prices placing downward pressure on farmgate prices, it will be important to see whether GDT auctions in the New Year continue with the recent trend for potential signs of price stabilisation.

Fonetrra article 18Dec14