Two massive GDT increases in August – recovery has taken hold!
The first GDT auction saw average prices lift 6.6%, while the second came in today at +12.7%, with strong price performance for all products. This second auction involved strong price increases for all products, most notably WMP (+18.9%) and butter (+14.1%). While the SMP price uplift, at 3%, is more modest, it is nonetheless meaningful.
While the annual quantities traded through the auction have decreased by 25% in the last 2 years or so, its bi-monthly results remain a deciding influence in buyers’ decision making, and therefore in market sentiment.
The outcome of the last two auctions is a clear indication that the 2-year slump has truly come to an end, and that the market recovery has taken hold.