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The GDT price index fell 5.1% at the auction as demand from North Asia slackened, with whole milk powder down 7.5% and skim milk powder down 4.6%. Butter fell 2.8% while anhydrous milkfat rose 3% and lactose rose 5.7%.
Weaker powder and cheese prices in the global auction signal softer export demand for dairy, which lowers milk prices and reduces the appetite for dairy-related feed ingredients.
thebullvine.comAug 5, 2020After 49 past bearish trade events, MILK moved a median -0.3% over 5 sessions (39% higher; middle half -4.7% to +1.5%), and -0.4% 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.
A 5.1% GDT drop on weaker North Asian demand (WMP, SMP lower) signaled softer global dairy demand and added bearish sentiment to US futures.
The 5.1% GDT drop on weaker North Asian demand weakened the export-price outlook and added to the bearish sentiment in US dairy futures.
The 5.1% GDT drop on weaker North Asia demand (WMP -7.5%, SMP -4.6%) signaled softer global dairy demand and added bearish sentiment, though it came on the same day as the move so was partly reinforcing.
