Global Dairy Trade index falls, but powder makes gains
The Global Dairy Trade index slipped eight-tenths of a percent in Tuesday’s trading event. The average price for all dairy products was $2,866 a metric ton, or $1.29 dollars a pound.
The two products that account for most of the sales volume both went up one-tenth of a percent. Whole milk powder sold for $2,745 a metric ton or $1.24 a pound, and skim milk powder sold for $2,373 a ton or $1.07 a pound. Milk powder accounts for more than three-quarters of the GDT sales volume.
Lactose was the only other dairy product gaining value in Tuesday’s trade. The lactose index was up 7.9% to $1,153 a metric ton, or $.52 per pound.
Butter prices dropped 5.8% to $3,867 a metric ton or $1.75 a pound. Buttermilk powder fell 10.3% to $2,107 a ton or $.95 a pound. Anhydrous milkfat was down 2.4% at $3,973 a ton or $1.80 per pound.
Rennet casein was off 5.1% to $8,891 a ton or $4.03 per pound Tuesday, but the next auction might reverse that loss. Brokers at Highground Dairy say Fonterra, which normally sells 15% of its casein production through the GDT auction has pulled some future offerings, indicating New Zealand’s demand for casein will require producers sell inventories off the GDT exchange.
The GDT index has fallen in six of the nine trading events held in 2020.