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Global Dairy Trade prices fell marginally in the latest auction as buyers in southeast Asia and the Middle East took up the slack in prices from the previous GDT auction.
The GDT price index fell by 0.8% and the all-important whole milk powder prices also fell by that amount.
The second September GDT event was more positive for prices and farmgate milk price forecasts than the first event for the month, when the GDT index fell 4% and powder prices were down 5%.
This time, products contributing to the holding pattern were skim milk powder, down 0.3%, butter down 0.8% and anhydrous milk fat down 1.5%.
Cheese prices were rather contradictory, with mozzarella falling a whopping 9.6% for a limited offering but cheddar rising by 2.2%, across all contract periods.
“Despite ample supply from New Zealand, the United States and Europe, this event confirmed that lower price levels are attracting demand back into the market,” NZX head of dairy insights Christina Alvarado said.
“The return of southeast Asia and Middle Eastern buyers for product timed to the NZ peak season helped anchor the index.
“These results suggest that while inventories remain ample, price levels have drawn some re-entry from buyers following the sharper correction in early September.”