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.
However, there were mixed results across products: whole milk powder prices rose by 2.1%, while skim milk powder prices dipped 0.8%.
Butter prices rose by 4.5%, but anhydrous milk fat was up just 0.5%. Buttermilk powder, which wasn’t offered at the previous auction, was down sharply.
Westpac senior economist Michael Gordon says the auction results were surprisingly positive, against the backdrop of a severely weakened global economy as many parts of the world have locked themselves down to slow the spread of COVID-19.
“It was, however, in keeping with the calmer tone in world financial markets since the last auction on 18 March,” he says.
Key results:
AMF index up 0.4%, average price US$4,345/MT
Butter index up 4.5%, average price US$4,263/MT
BMP index down 11.9%, average price US$2,446/MT
Ched index up 0.2%, average price US$4,395/MT
LAC index up 4.4%, average price US$959/MT
RenCas index down 2.6%, average price US$9,717/MT
SMP index down 0.8%, average price US$2,514/MT
SWP index not available, average price not available
WMP index up 2.1%, average price US$2,820/MT
