GDT price index fall by 4.1% is highest in this year. Here is a summary of the results from the latest GDT Trading Event.As expected the index plummeted by 4.1% . It was slightly more than the expectations. Major agencies including Rabobank are also suggesting a cautious approach . The major reason being that the traction in milk production in key territories is outweighing the surge in demand. War like situation is another reason for a slight bearish sentiment.
Now the Average Dairy price is at Price $4,274 . A total of over 25000 Mt of dairy products were traded which is encouraging .
Key Results for various dairy products are as follows :
Anhydrous Milk fat has declined by 4.2% to reach at and Average price per MT of $6,928 .
Butter has come down to $7,522 per MT after a 4.3% drop.
Cheddar Cheese has also gone down by 2.8% to reach at $4860 per MT . On the contrary one of the by products of cheese industry, Lactose has shown a 4.2% again to reach at $1,375 per MT.
Mozzarella Cheese remained almost stable with a minor 0.2% drop at $4709 per MT.
Skimmilk Powders as expected has further gone down to $2718 after a 1.7% decline. But price drop of 5.15 % in WMP could be alarming and a setback for Fonterra. Their farmer price depends upon this commodity in a major way. Current WMP price is $3,859 per MT.
As Event 384 (July 15) approaches, the outlook remains cautious. Powder markets are likely to extend their softening trend unless Asian or Chinese demand revives sharply. However, butter and cheddar markets may continue showing relative strength, supported by fat demand dynamics.
Key recommendations for stakeholders:
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Hedge smartly around powder exposure as inventory grows and demand softens.
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Explore butter and cheddar trading opportunities while premiums remain attractive.
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Track regional demand signals, particularly from Asia and the Middle East, and monitor Northern Hemisphere milk supply trends.
Source : Dairynews7x7 July 2nd 2025 -GDT events