The Global Dairy Trade (GDT) price index has dropped by 5% following its latest trading event which took place earlier today (Tuesday, July 19).
The result is another significant drop for the index which fell by 4.1% following the previous auction on July 5.
It marks the third consecutive fall for the index and reflects a general downward trend since March 1, when it hit a record high of 1,593.
There was a slight rally in early June, when a 1.5% gain was achieved.
As result of trading event 312 today, the index now stands at 1,223, a level not seen since last October.
The average price achieved at today’s trading event was $4,166 with 23,219MT of product sold.
The minimum supply was 22,295MT and the maximum supply 25,725MT.
Of the 149 bidders participating, 109 were successful, in the auction which lasted for for two hours and 17 minutes across 18 bidding rounds.
All of the dairy commodities offered for sale recorded a drop in their average price.
Butter milk powder (BMP) was not offered for sale, while there was no information available for lactose and sweet whey powder (SWP).
It was a particularly tough auction for skim milk powder (SMP) which suffered a 8.6% drop for an average price of $3,709/MT. This follows a 5.2% decrease in the July 5 event.
Butter, which previously had a sharp price drop of 9.1%, fell by 2.1% to $5,530/MT.
Whole milk powder (WMP) was down by 5.1% in today’s auction to stand at an average of $3,757/MT.
There was a 2% fall in the average price of cheddar which finished the event at $4,825/MT. The commodity had gained 1.4% in the previous GDT event.