GDT

China not the key driver as buyers from southeast Asia/Oceania step up.

Whole milk powder and skim milk powder volumes shifted from core event to GDT pulse auctions.

Overall prices reach their lowest levels since 2018.

Lows across the board, with cheese the only pat on the back.

‘Such a large fall will increase the chance of further downgrades’.

After mini rally, GDT prices fall to lowest level since late 2020.

Flat result was not unexpected by market.

Auction produces first increase for three months.

Flurry of downward revisions as Chinese interest takes a while to revive.

Constant big buyers for the commodity were nonexistent at this auction, with volumes being split between southeast Asia and north Asia only, pulling demand significantly lower.

The reason may be an overhang of dairy products in Chinese storage, but analysts had expected clearer signs of a lift at this stage of the season.

The auction lasted six rounds.

From a regional buying perspective, China has again dominated the auction but this had no influence on overall demand.

Recovery from the Chinese covid lockdown centres on butter and cheddar were notable as consumers return to restaurants, cafes and bakeries where these products are key inputs.

NZX wraps up the week that was in dairy.

Biggest positive move for dairy commodities since September.

‘Buyers chasing product across the board’ – NZX.

The latest GDT was a lack-lustre affair, with very little movement in prices compared with the previous auction.

NZX reports on the latest GDT event.

Bidding round information showed more demand arrived for WMP compared to the last event.

Close eye on China demand as prices tick higher.

NZX reviews the week that was in dairy.

Fall in prices prompts rethink on supply-demand outlook,

So what happened at GDT?

All five major dairy commodities drop in latest GDT auction.

Winning prices decreased across all contracts on offer.

As a result of the increases at GDT 315.

Uptick in mood of international dairy market reflects in auction.

Over the last three weeks, the SGX-NZX Dairy Derivatives market has pushed upwards.

NZX lifts milk price forecast following GDT event 315.

Six-month losing streak broken at Global Dairy Trade auction.

Australia’s June milk production declined a whopping 9.2%.

The key takeaway here is that demand does still exist, but buying habits are different currently.

But sharper cheddar price whets appetite for turnaround in demand.

With current exchange rates, inflation impacts, shipping costs and other inputs, the easing in dairy prices will be welcomed as current uncertainty makes long-term views harder to shape.

NZX analyst Alexandria Winning-Browne takes a look at the week that was in dairy.