Copyright farmersweekly
Reading Time: < 1 minute The Global Dairy Trade price index fell on November 5 for the sixth consecutive fortnightly event, losing 2.4% when weighed down by whole milk powder prices falling 2.7%. Cheddar fell 6.6%, butter by 4.3% and anhydrous milk fat by 1.9%. Skim milk powder was unchanged since the previous event. Mozzarella was up by 1.6% and buttermilk powder was up 1%. The GDT dairy market has fallen by 15.5% since mid-May as milk production increases in New Zealand, Europe, the United States and Argentina, while demand for dairy commodities has softened. Cristina Alvarado, head of dairy insights for NZX, said product deliveries from New Zealand are now aligned with Christmas, New Year, Chinese New Year and Ramadan and that buyers seem content with what they have in the pipeline, leading to reduced participation in the auction processes. “WMP exports have been robust, with NZ volumes up 12% year on year in September, suggesting that much of the product has already been contracted. “Buyers continue to purchase on a hand-to-mouth basis rather than building inventories – a trend consistent with subdued demand from southeast Asia and Oceania. “China once again dominated the auction, accounting for 53% of total demand while participation from other regions remained limited.” Alvarado summed up the supply-heavy environment, saying the near-term market outlook remains soft and that attention now shifts to early 2026 and demand signals to determine when market sentiment might begin to turn.
