The GDT price index fell for the seventh time in a row

At the auction in mid-July, the average price index at the global GDT dairy auction continued to decline. This was the seventh consecutive decline in the index of average prices for exchange-traded dairy products, which began in mid-April.

The value of the GDT index in the last auction fell by 2.9%, or 35 points, to 1,179 points. (mid-July 2020 - 989 items); the weighted average indicative price for dairy products amounted to 3,839 usd/t. Trading volumes (22.4 thousand tons) were 6.6% lower than the same period in 2020 and 7.7% lower than trading volumes at the beginning of the month. The main driver of the index is traditionally MILK powder .

The weighted average price for whole milk powder (WPM) - the key product of the trading floor - decreased by 3.8% (the fourth consecutive decrease), to 3,730 USD/t. Decrease - for all contracts. The largest decrease was for deliveries in December (-4.5%, to 3,606 USD/t), the price of which formed the lower limit of the updated price corridor, the upper limit was formed by the next August deliveries (3,998 USD/t, -3.0% ).

Prices for skimmed milk powder also rolled back for the fourth trading in a row: the weighted average price fell by 5.2% and fell below 3,000 USD / t, to 2,971 USD / t, which was the minimum value in 2021. The decrease is across all contracts. The most significant price reduction occurred for September deliveries (-6.7% to 2,933 USD/t). The updated borders of the price corridor formed deliveries in September (-6.7%, up to 2,933 USD/t) and November (-3.9%, up to 3,090 USD/t).

Prices for milk fat also continued to decline, but at a slower pace. The weighted average price for anhydrous milk fat has remained virtually unchanged and has remained relatively stable since the beginning of May with an overall weakly pronounced downward trend. At the last trades, the reduction in prices for AMF averaged 0.3%, to 5,615 USD/t, while most of the contracts fell, except for the next August (+1.3%, to 6,127 USD/t) and September ( +0.6% to 5,681 USD/t). The new price corridor was formed by shipments in December (-1.9%, to 5,468 USD/t) and the next August shipments (+1.3%, to 6,127 USD/t).

Butter also slowed down the rate of price reduction: -0.8% to 4,419 USD/t (minimum value in 2021), widening the price gap between butter and AMF to 1,196 USD/t, which was the maximum difference in prices from mid-February 2018. A decrease in prices for butter was noted for all contracts, except for September ones (+0.7%, to 4,393 USD/t). The lower limit of the price corridor at the last trades was formed by deliveries in September (4,393 USD/t, +0.7%), the upper limit – by deliveries in December (4,495 USD/t, -0.7%).

The largest price decrease in relative (percentage) terms following the results of the last trades occurred for lactose (-8.9%, to 1,127 USD/t). At the same time, the only category that showed an increase in the average price was cheddar cheese (+1.3%, to 4,022 USD/t). Compared to mid-July 2020, the average price of contracts (in DOLLAR terms) for the supply of SMP remains higher by 10.9%, SPM - by 15.9%, butter - by 25.1%, cheddar - by 5.8 %.

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