22 Jan 2015
GDT AUCTION SHOWS POWDER PRICE RECOVERY UNDERWAYDairy
Commenting on this week’s GDT auction, which saw an average price increase of 1%, particularly driven by WMP (+3.8%), SMP (+1%) and rennet casein (+3.3%), IFA National Dairy Committee Chairman Sean O’Leary said this was a clear sign that powder and protein prices, just like butterfat prices in previous auctions, had now started to recover.
“This is the third auction in which powder prices have been increasing, and the fifth auction to see butter prices rising,” Mr O’Leary said.
“I would expect this to influence market sentiment globally, and would be hopeful that buyers, in China and elsewhere, will now take the view that there is no point in waiting for cheaper prices which are unlikely to materialise. This is the very reason why it is always important to avoid talking down markets,” he concluded.