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The Global Dairy Trade auction average fell 5% to US$3,232 per tonne, the third consecutive decline and the largest drop in nearly 18 months. Whole milk powder fell 7.3% and auction volumes rose nearly 23% as the new season began.
Falling milk powder prices and higher offered volumes at the start of the new season point to weaker global dairy pricing. This lowers farmgate milk returns in exporting regions.
rnz.co.nzTe Reo Irirangi o AotearoaJul 3, 2018Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Largest GDT drop in 18 months (WMP -7.3%) on July 3 signaled weak global demand and pressured US dairy futures sentiment.
The GDT auction fell 5% with whole milk powder down 7.3% on higher volumes, weighing on global dairy price expectations and US futures.
