Underwhelming GDT auction fails to live up to expectations amidst market unrest

Underwhelming GDT auction fails to live up to expectations amidst market unrest

In a rare occurrence, the latest Global Dairy Trade Auction has seen no movement in the total overall index price. 

Cheddar saw the biggest change, plummeting 9.7%, while Skim Milk Powder (SMP) and Butter also fell by 3.8% and 1.1% respectively.

On the other side of the coin, Whole Milk Powder (WMP) saw the most prominent increase, up 1.9% on GDT 343, while Anhydrous Milk Fat (AMF) saw a 0.9% rise.

Dairy Market Expert Stu Davison told REX host Dom George that the market expectation was strong, with expectations of a stronger auction.

"Some real bullish tones coming into this auction which were mostly decimated by the outcomes to be honest," he said.

Davison described the current whole global dairy market as 'really sluggish' and reiterated that buyers are hesitant to push prices up significantly with the uncertainty around these markets.

Although GDT 344 saw an increase in both Whole Milk Powder and Anhydrous Milk Fats, he explained that there is still much to be desired from both products, for Kiwi farmers to get the best bang for their buck.

With El Nino looking to be heading towards New Zealand, Davison and George talked about the impact that could have on supply in Aotearoa.

The pair also discussed other factors that are impacting both supply and demand and results these are likely to have in the coming auctions moving forward into 2024.

Listen to the full chat between Stu Davison and Dominic George above.

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