GDT results up again

Agsmart. 16 October 2020 01:58 AM

The latest GDT index rose 2.2% this week, consolidating gains from the previous auction.

Almost all commodities were up, except SMP which hovered at –0.9%. Biggest gains were BMP up 9.1% and butter up 8.4%. Westpac NZ agri-economist Nathan Penny noted WMP prices topped the key psychological barrier of $US3000/tonne for the first time since August, “indicating a degree of confidence in the market." However, the weakening $US will affect Australian exports.

… ALSO: Reporting on the impact of COVID on the GDT this week, DA commented: “Since the start of the pandemic, price volatility has been a feature of the GlobalDairyTrade (GDT) auction. After the initial prices drop, buyers were quick to purchase cheaper product left on the market. Throughout August prices continued to drop as buying from many price sensitive markets, in south-east Asia and the Middle East North Africa region, remained subdued … buying has generally been in a hand-to-mouth manner with significant hesitation around taking on stock. In comparison to other markets, Chinese buyers have remained active on GDT. This seems to be supported by the country’s aim to maintain large inventories for reasons of food security. While China has been able to financially support these larger stockpiles, south-east Asia and other emerging market have not had the finance for these sorts of buying programs.”