First positive results from Global Dairy Trade auction in months
The Aug. 17 Fonterra Global Dairy Trade (GDT) auction showed the first gain in overall product prices since April, albeit only a modest 0.3 percent increase. Butter (+4.0 percent) and cheddar cheese (+2.8 percent) saw the strongest gains, with 180 active bidders and 22,543 MT of products changing hands.
Most product categories saw price gains, with only whole milk powder faltering by -1.5 percent to $3,552 per MT. Interestingly, skim milk powder managed a nominal lift of 1.1 percent, as did the other primary commodity category of anhydrous milk fat, which rose 1.5 percent.
Demand appears to be stabilizing after falling by nearly 15 percent since the end of the first quarter. The past five months have seen demand stall amid rising cases of the COVID-19 Delta variant, challenging expectations of the post-pandemic recovery. China has responded with shipping port closures to forestall widespread contagion as seen late in 2020.
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