# Dairy prices plummet at GDT auction as China demand slackens

> 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%.

- Date: 2020-08-05 · published 2020-08-05T12:00:00.000Z
- Category: trade · region Global · magnitude medium
- Page: https://feedsoft.ai/events/8829-dairy-prices-plummet-at-gdt-auction-as-china-demand-slackens
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

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.

## Read by commodity

- MILK: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| MILK | 2020-08-07 | 5 | -21.1% | -3.2 | 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. |
| MILK | 2020-08-06 | 5 | -21.1% | -3.3 | 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. |
| MILK | 2020-08-05 | 1 | -20.3% | -3.7 | 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. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2026-06-02 | [Fall in dairy auction prices mars start of season \| RNZ](https://feedsoft.ai/events/7959-fall-in-dairy-auction-prices-mars-start-of-season-rnz.md) | -4.7% | -5.4% |
| MILK | 2026-07-03 | [Weekly protein report: Dry dairy prices slip as demand stays uneven
						 \| The Dairy Site](https://feedsoft.ai/events/8575-weekly-protein-report-dry-dairy-prices-slip-as-demand-stays-uneven-the-dairy.md) | +0.8% | +0.8% |
| MILK | 2023-02-02 | [US cheese and dairy growth, prices on a downward trend - Food & Agribusiness](https://feedsoft.ai/events/5879-us-cheese-and-dairy-growth-prices-on-a-downward-trend-food-and-agribusiness.md) | -0.5% | -1.1% |
| MILK | 2022-08-01 | [China’s reduced buying has sent prices lower](https://feedsoft.ai/events/4580-china-s-reduced-buying-has-sent-prices-lower.md) | -11.1% | -10.6% |
| MILK | 2023-08-31 | [Exports Drive Dairy Prices Whey Up (and Down) - Farmer Mac](https://feedsoft.ai/events/34591-exports-drive-dairy-prices-whey-up-and-down-farmer-mac.md) | -1.5% | -2.6% |

## Sources

- thebullvine.com: https://www.thebullvine.com/news/dairy-prices-plummet-at-gdt-auction-as-china-demand-slackens/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.