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Dairy product prices rose more than expected at the August 2 Global Dairy Trade auction. The GDT index rose 6.6% to an average of US$2,436 per tonne, and whole milk powder jumped 9.9% to US$2,265 per tonne.
Analysts said milk production is slowing globally, with lower EU output and returns.
Slowing global milk output and a strong auction lift dairy prices, which can raise costs for dairy-derived feed and signal firmer milk returns.
businessdesk.co.nzMargreet DietzAug 2, 2016After 41 past bullish trade events, Milk (Class III) moved a median -0.1% over 5 sessions (49% higher; middle half -1.3% to +8.1%), and +1.1% over 20.
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.
The Aug 2 GDT auction jump (index +6.6%, WMP +9.9%) with slowing global milk output signaled tighter supply and lifted global dairy sentiment, supporting US Class III futures.
The 6.6% GDT index jump and 9.9% WMP gain on Aug 2 signaled a global dairy price rebound and slowing supply, lifting sentiment and US Class III futures.
