Commenting on this week’s decisive 2.4% increase in the weighted average price for commodities traded through GDT, IFA National Dairy Committee Chairman Sean O’Leary said it confirmed the trend established in the previous three auctions of a strong recovery in butter and butteroil (AMF) prices. He added that the price trend for WMP, the product most traded through the auction, appeared to be turning around, with the first increase in 3 auctions at +1.4%.
“I believe the results of yesterday’s GDT confirm the widely held view that global prices had reached unsustainably low levels, and that we are now in a price recovery phase. While I am aware that it will be some time before this translates into a recovery in farm prices, it certainly should help transform market sentiment internationally, and set the scene for improved commodity prices during 2015,” he said.
“Butteroil (AMF) GDT prices have increased by 27.5% in the last three auctions, with butter following closely at 25.5% up over the same period. This is helping to narrow the gap with EU prices, and a continuation of this trend, together with the current weakness of the Euro, should help EU butterfat become more competitive on markets over the coming weeks,” Mr O’Leary concluded.