GDT Dairy Auction Falls Again May 6, 2015 12:00 am Global dairy commodity prices continue on their downwards trend. The latest Global Dairy Trade (GDT) auction onthe 5th May saw the index of prices drop a further 3.5% compared to the previous sale. The resulting average price was $2,515 per tonne – only a fraction above the low-point markets reached in December. Values have now fallen for four auctions in a row. The usual factors are behind the weak markets. The amount of product being offered through the auction is high, with volumes up 7% at this sale compared with that a fortnight earlier. With Europe approaching the peak spring flush, and output high in other parts of the world, this seems unlikely to change in the short-term. Buyers are relaxed about securing supplies and are reluctant to bid up prices. On the basis of weakening markets the New Zealand dairy co-op Fonterra has reduced its forecast milk price for the 2014-15 season. Its supplying farmers are likely to receive the equivalent of 17-18ppl for the June 14 to May 15 milk year.
