Pleasant surprise as GDT increases 14.8%

Published 18 August 15

The latest Global Dairy Trade (GDT) auction index has increased a surprising 14.8% from the previous auction. While product offered has fallen compared to the previous auction, down 11,115 tonnes, it is still higher than earlier in the year. This combined with the number of buyers increasing has resulted in the better than expected result.

GDT graph 18.08.15

While the increase is a positive sign, it should be treated with caution. Globally supply is still plentiful but buyers may now be more interested in the market. The next few auctions (next one 1 September) could be crucial to whether wholesale prices react positively or not.