GDT auction up again – corner turned?

Published 1 June 16

The Global Dairy Trade (GDT) auction is up for the second consecutive time, with the weighted average price up to US$2,329/tonne. The trend is on the up and it seems sentiment regarding a slowdown of milk production growth is starting to turn fortunes around, although prices still have a long way to go.

GDT 01.06.16

The auction was not all positive price movements. The average price for WMP fell 1.7%. Fonterra released forecasted volumes and its WMP was nearly double the previous auctions amount, at around 11k tonnes. This step up in volume is likely to have impacted prices.