Archive: GDT auction down 7.3% as all commodities decline

Published 2 October 14

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Prices for all commodities fell at the latest Fonterra GlobalDairyTrade (GDT) auction on 1 October. This resulted in a 7.3% decline in the overall auction index, with an average winning price of US$2,599/tonne.

The auction index for WMP, which accounts for around 60% of total volumes traded at the auction, fell by 10.0%. Although on an overall downward trend since the start of the year, WMP prices had made some small gains in auctions over recent months. However, the SMP auction index has been in consistent decline since February 2014, falling by a further 2.7% at 1 October event.

Like other key exporting regions this year, New Zealand milk production is performing well, adding downward pressure to prices. Fonterra expects its milk supply to grow 2% in the 2014/15 season, and recently dropped its forecast farmgate milk price for 2014/15 due to the uncertain outlook for global trade and the impacts of increased price volatility.