Milk Auction Rises Again

The Global Dairy Trade (GDT) auction rose 10.9% at the latest sale on 1^st September.  This comes after a 14.9% rise in the weighted index price at the previous sale.  Whilst good news for global dairy producers, it is still far to early to say that the market has turned decisively upwards.  Volumes being sold were again down (around half of the levels seen at the same time last year).  With milk production still high around the world, product appears to be going into store rather than sold.  This will have to come out onto the market at some point which may delay any price recovery.