GDT price index falls for first time since start of March

At the GlobalDairyTrade auction, the dairy prices dropped 0.8 percent. This is the first decline seen since the beginning of March. The decline was mainly due to 3.3 percent fall recorded in whole milk powder prices. But skim milk powder prices were up 1.4 percent and fat products continued to reach new highs.

“Our forecast of a $6.50/kgMS milk price for this season allows for some pullback in world dairy prices over the rest of this year”, said Westpac in a research report.

Amongst the major exporting nations, milk production has turned higher again in 2017, as prices have grown back above the break-even levels.