Middle East demand cushions global dairy price drop at latest GDT auction
The upheaval in the Middle East may have eased the fall in global dairy prices last week.
Key Results:
AMF index up 4.7%, average price US$3,797/MT
Butter index up 6.6%, average price US$2,871/MT
BMP index up 7.7%, average price US$1,661/MT
Ched index down 0.8%, average price US$2,889/MT
LAC index up 3.7%, average price US$741/MT
RenCas index up 16.3%, average price US$6,161/MT
SMP index up 2.1%, average price US$1,965/MT
WMP index up 9.9%, average price US$2,265/MT
ASB rural economist Nathan Penny says the overall result was stronger than their expectations heading in; they expected WMP prices to lift by between 5% and 7%.
The bounce was also broad-based. On top of the WMP increase, casein prices surged 16%, while butter and BMP rose 7% and 8%, respectively. Only cheddar prices recorded a fall.
"From here, we expect rapidly tightening global supply to lift prices further over 2016," he says.
