The latest Global Dairy Trade (GDT) auction recorded a 0.8% decline in the price index, extending the downward trend to three consecutive decreases. The auction closed at an average price of €3,434 per metric tonne, reflecting ongoing volatility in global dairy markets.
While specific product categories such as cheddar showed resilience, others, including mozzarella and skim milk powder, registered notable declines.
📊 GDT Event 388 – Product Price Movements
| Product | % Change | Trend | Market Notes |
|---|---|---|---|
| Cheddar | +2.2% | ⬆️ Increase | Strong buyer demand despite overall market softness |
| Mozzarella | -9.6% | ⬇️ Sharp fall | Food service demand is weak, especially in Asia |
| Skim Milk Powder (SMP) | -0.3% | ⬇️ Slight dip | Relatively stable but still under pressure |
| Whole Milk Powder (WMP) | ↓ (negative) | ⬇️ Decline | Weak demand from key importers; Oceania supply rising |
| Anhydrous Milk Fat (AMF) | ↓ (negative) | ⬇️ Decline | Demand is softer in Asia and the Middle East |
| Butter | ↓ (negative) | ⬇️ Decline | Price weakness linked to reduced forward buying |
| Overall GDT Index | -0.8% | ⬇️ Down 3rd auction in a row | Buyers remain cautious, delaying large purchases |
| Average Price | €3,434/MT | — | Weighted average across traded dairy commodities |
📉 Market Insights
- Seasonal milk flush in Oceania is adding downward supply pressure.
- Currency effects (a strong USD) are making imports pricier for Asia & the Middle East.
- Buyer caution: forward purchasing reduced, waiting for further corrections.
- Cheddar stands out as a product with resilience versus powders and fats.
- Whole milk powder (WMP) prices were down, showing weakness across key demand regions.
- Anhydrous milk fat (AMF) and butter also recorded declines, reflecting softer demand in both Asian and Middle Eastern markets.
- Buyers were noted to be cautious, with reduced forward purchasing, suggesting uncertainty about medium-term price stability.
- Dairy Desk highlighted that seasonal production increases in Oceania are beginning to add supply pressure, influencing price softness.
- Currency movements, especially the strength of the U.S. dollar, have reduced affordability in import-heavy regions.
- Overall, the report points to a market in transition, where cheddar’s relative resilience contrasts with broad-based weakness in powders and fats.
