Dairy prices dropped to a 15-month low yesterday in the GDT auction. It suggests that dairy farmers' incomes will also decline in the coming year.
The auction result was 3.9% below the last auction. The ton of dairy products averaged $ 2,969 in the last auction this year.
In the second quarter of 2017, dairy prices rose as global demand was very good and fresh milk production decreased. Since then, prices have fallen again.
Although the index rose by 0.4% in the previous auction, the market indicator fell in five of the last auctions. Yesterday's auction disappointed down the line. With a higher supply of fresh milk, prices for all dairy products fell. Now it is to be feared that the disbursement prices for fresh milk sink.
Yesterday, a total of 29,592 tonnes of dairy products were auctioned. That was 0.3 more than in the last auction.
The next GDT auction will take place on 2 January.
Text: HANSA Derivatives Trading GmbH / 
