GDT price index down 3.6%

At the auction in early July, the average price index at the global dairy auction GlobalDairyTrade continued to increase the rate of decline.

The value of the GDT index in the last auction fell by 3.6%, or 45 points, to 1,214 points. (at the beginning of July 2020 - 996 items); the weighted average indicative price for dairy products amounted to 3,924 usd/t.

Trading volumes (24.3 thousand tons) were 5.5% lower than the same period in 2020, while compared to the previous trading in mid-June, the growth was 12.8%.

The dynamics of the index is traditionally due, first of all, to a decrease in prices for powdered MILK . The weighted average price for whole milk powder (WPM), the key product of the trading floor, decreased by 3.0% to 3,864 USD/t. Decrease - for all contracts, except for the nearest August ones (+0.6%, to 4,059 USD/t). The largest decrease was for deliveries in December (-6.1%, to 3,763 USD/t). The lower limit of the updated price corridor was formed by deliveries in January 2022 (3,736 USD/t, -3.9%), the upper limit was formed by the next August deliveries (4,059 USD/t, +0.6%).

Prices for skimmed milk powder also rolled back for the third auction in a row: the weighted average price immediately fell by 7.0%, to 3,126 USD/t. Decrease - for all contracts. The most significant price reduction occurred for December deliveries (-8.6%, to 3,044 USD/t), deliveries in early autumn also fell significantly: in September - by 7.0% (to 3,127 USD/t), in October – by 7.7% (up to 3,122 USD/t). At the same time, after falling at the last auction, the average price for SOM returned to the average level of January 2021, leveling the semi-annual growth. The updated borders of the price corridor formed deliveries in December (-8.6%, up to 3044 USD/t) and November (-4.9%, up to 3215 USD/t).

Prices for milk fat also showed a downward trend in the last auction. The weighted average price for anhydrous milk fat has remained relatively stable since the beginning of May, with an overall weakly pronounced downward trend. At the last trades, the decrease in prices for AMF averaged 0.9%, to 5632 USD/t, while most of the contracts fell in price, with the exception of October (+1.4%, to 5627 USD/t) and December (+0 .4%, up to 5582 USD/t). The new price corridor was formed by shipments in November (-0.2%, to 5564 USD/t) and the next August shipments (-3.6%, to 6088 USD/t).

At the same time, butter maintained a more significant average decline rate: -3.2% to 4458 USD/t, widening the price gap between butter and AMF to 1174 USD/t, which was the largest price difference since March 2019. A decrease in prices for butter was noted for all contracts. As a result of a series of successive reductions in prices for butter in May-July, the dynamics of 2021, which began with a rapid increase in prices to levels close to the maximum levels of 2017-2018, was completely leveled. The lower limit of the price corridor at the last trades was formed by deliveries in September (4373 USD/t, -5.1%), the upper limit – by deliveries in August (4568 USD/t, -1.1%).

The largest price decrease in relative (percentage) terms following the results of the last trades occurred for dry buttermilk (-9.8%, to 3298 USD/t) and cheddar cheese (-9.2%, to 3949 USD/t). The price for lactose remained at the level of the previous trades (1238 USD/t).

Compared to the beginning of July 2020, the average price of contracts (in DOLLAR terms) for the supply of SMP remains higher by 16.0%, SPM - by 20.4%, butter - by 19.9%, cheddar - by 5.0 %.

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