Date: May 20, 2025
Source: GDT Trading Event 380
The Global Dairy Trade (GDT) auction held on May 20, 2025 (Trading Event 380), witnessed a mild decline in overall dairy commodity prices, with the GDT Price Index slipping by 0.9%. The average winning price across all products settled at $4,589/MT (EUR 4,075/MT), reflecting cautious buyer sentiment amid shifting market fundamentals.
Key Product Movements:
| Product | Price Index Change | Average Price (USD/MT) | Average Price (EUR/MT) |
|---|---|---|---|
| Anhydrous Milkfat | +0.9% | $7,273 | €6,458 |
| Butter | -1.5% | $7,821 | €6,944 |
| Cheddar Cheese | -9.2% | $5,007 | €4,446 |
| Lactose | -13.2% | $1,398 | €1,241 |
| Mozzarella | +0.7% | $4,788 | €4,251 |
| Skim Milk Powder | -0.7% | $2,817 | €2,501 |
| Whole Milk Powder | -1.0% | $4,332 | €3,846 |
Analysis:
- Cheddar and Lactose prices saw the steepest declines, with cheddar falling 9.2% and lactose plunging 13.2%, indicating potential oversupply or weak spot demand in these categories.
- Butter prices also dipped slightly by 1.5%, continuing a mild downward trend from the previous auction.
- Anhydrous Milkfat and Mozzarella bucked the trend, posting gains of 0.9% and 0.7% respectively, suggesting sustained buyer interest in high-fat dairy components.
Outlook:
This softening in prices suggests that while global demand remains intact, buyers are becoming more selective, particularly in response to regional market fluctuations, inventory adjustments, and macroeconomic uncertainty. The modest rebound in milk fat products may also indicate shifting preferences toward premium dairy fat-based formulations in foodservice and retail.
The next GDT event is scheduled for June 3, 2025, and market watchers will be keen to see whether the current correction continues or stabilises.