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GDT falls twice in February

Thursday, 20 February 2020

By Kat Jack

The Global Dairy Trade price index was down 2.9% following the 18 February event. Prices were down across nearly all offered products, although cheddar bucked the trend. Whole milk powder (WMP) and skimmed milk powder (SMP) were both down 2.6%, and together made up roughly three-quarters of volumes sold. These declines, however, are less severe than at the previous event, when the overall index was down 4.7%.

The auction was held against the backdrop of coronavirus causing disruption in Asian markets. GDT events are a frequently used by Chinese buyers to purchase product. Therefore it could be that the disruption is impacting demand and adding some downwards pressure to prices.

Katherine Jack

Analyst - Dairy

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