The 21 October 2025 auction of GDT Event 390 revealed a weakening tone in the global dairy‐ingredients market. According to trade commentary, the event “signals a weak outlook for global dairy prices”. The organisers noted that the published price indices had faced a correction process; a notice said the “price indices for Trading Event 390 have now been resolved” and are available.
The Global Dairy Trade (GDT) Event 390, held on October 21, 2025, revealed a continued softening in global dairy prices, signaling a cautious market outlook. The GDT Price Index experienced a decline of 1.4% compared to the previous event, reflecting a trend observed over the past several auctions.From commentary, it appears that bidding demand was muted, volumes may have been lower or offered at higher starting prices, and buyer caution was more pronounced than in past events.
GDT Price Trend Summary (Events 385–390)
| Event No. | Date | % Change in GDT Price Index | Average Price (US $/t) | Key Product Trends | Market Tone / Insight |
|---|---|---|---|---|---|
| 385 | 5 Aug 2025 | +1.8 % | 4,249 | WMP and Butter stronger | Demand resilient post-Q2 slump; steady Chinese buying. |
| 386 | 19 Aug 2025 | -0.3 % | 4,291 | WMP steady, SMP weaker | Slight correction; buyers cautious amid ample Oceania milk. |
| 387 | 2 Sep 2025 | -4.3 % | ~4,050 | WMP & SMP fell; Butter flat | First strong pullback; heavy NZ supply ahead of spring flush. |
| 388 | 16 Sep 2025 | -0.8 % | ~4,020 | Cheese firm, Mozzarella down | Product divergence; overall tone softer but not panicked. |
| 389 | 7 Oct 2025 | -1.4 % | 3,881 | WMP 3610 / SMP 2559 / Butter 6662 / AMF 7038 | Clear softening across commodities; buyers stepped back. |
| 390 | 21 Oct 2025 | Data corrected (≈ -1–2 %) | ~3,900 (est.) | Muted bidding across all categories | Weak outlook flagged by traders; demand subdued into Q4. |
Sources: GDT official releases, DCANZ Market Intelligence, AHDB Dairy, DairyNews7x7 analysis.
Market Outlook & Forecast
Given the softer tone at Event 390, the outlook for the next few GDT auctions is cautious to slightly bearish. Key factors shaping the forecast:
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Supply pressures: With global milk production remaining steady or expanding in major exporting regions (e.g., New Zealand, EU, US), the risk of surplus ingredient stocks remains. This will dampen upward price momentum.
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Demand uncertainty: Slower downstream dairy consumption growth, currency/headwinds in importing markets, and higher feed/input costs for producers may restrain uptake of high-priced commodity powders.
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Contract period lag: GDT auctions include multiple forward delivery periods; softer bidding now may reflect hedging for later delivery, meaning immediate contract periods may carry downward pressure on price indices.
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Regional implications: For India and other import markets, weaker global commodity prices may reduce import cost pressures—but local dynamics (domestic milk supply, freight, regulatory duties) will still play a major role.
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Forecast: Over the next 2-3 auction events, we might expect the GDT Price Index to slide by 2-4% per event unless supply tightens or a demand shock occurs. If a major producer imposes a cutback, there could be a rebound; however under the current backdrop the baseline scenario is flat to modestly lower.
What This Means for Industry Players
For dairy processors, ingredient traders and policy makers the implications are:
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Importers (including in India) may see a window of opportunity to secure lower‐priced SMP/WMP contracts, improving cost competitiveness for value-added dairy lines.
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Export‐oriented producers should review margins: with weaker global benchmark prices, margin compression may become more pronounced unless cost control is sharpened.
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Cooperatives and farm-gate suppliers in Asia should be alert to possible price spill-downs from global commodity trends; if ingredient costs drop, processor procurement strategies may shift—potentially tightening farm-milk premiums.
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For strategic planning: downturns in global commodity benchmarks often spur innovation—growth of value-added dairy segments (protein isolates, speciality powders) and alternative streaming may accelerate as players seek margin resilience.
Source : Dairynews7x7 Oct 21st 2025 Global Dairy Trade