At a global auction held early in the morning of May 22, milk prices began to fall.
The GDT (Global Dairy Trade) price index fell 1.2%, with an average selling price of $ 3,414 per ton. The index rose 0.4 percent during a previous sale, an eleventh consecutive increase.
Whole milk powder, the best-selling product, fell 2.1%, mainly due to an increase in supplies from the Northern Hemisphere. But analysts say the outlook remains relatively strong due to high demand from Asia.
“It appears that demand in China has remained fairly stable over the past month. Continued strong demand from China will be key to determining whether milk and dairy products can stay at these levels, ”said economists at Westpac, one of Australia’s largest banks, one of the top four banks and the second largest Bank in New Zealand.
Auction Global Dairy Trade is held by the American company CRA International Inc. Auction GDT Events belongs to the New Zealand Fonterra Co-operative Group Ltd, which controls almost a third of the global trade in dairy products, but operates independently of the dairy giant.
A total of 15 510 tons of milk were sold at the last auction, which is 0.9% more than in the previous sale, the auction platform reports on its website. Auctions are held twice a month, the next is scheduled for June 4.
