GDT Rises May 18, 2016 12:00 am The latest results from the Global Dairy Trade (GDT) auction held on 17th May show the average price index rose by 2.6% compared to the last event to $2,283. The positive result was driven by a 3% gain in WMP prices, butter prices also rose by 3.8%. Although this is a positive move for the market, SMP prices remain under pressure. Prices at the latest auction fell by 1% and are now 17% lower than year earlier levels. Production and stocks of SMP are high. There is now nearly 190,000 tonnes of SMP in EU intervention, the 218,000 tonne cap is expected to be reached by early June. This could be extended once again but if not support will still be available but this will be through a tender process. The price gap between WMP and SMP is widening. WMP is nearly $600 per tonne higher than SMP; historically the difference has been nearer $100 per tonne. Manufacturers may look at switching to to producing WMP.
