Global Dairy Trade prices finally rally, thanks to supply squeeze

Freefalling milk prices seem to have finally found a bottom, as prices on the Global Dairy Trade (GDT) auction site bounce by 15%, following a rally in the dairy futures market.

Tuesday’s GDTevent, which is run by New Zealand milk giant Fonterra, saw prices for whole milk powder rise 19% from the last event two weeks ago, while prices for anhydrous milk fat soared 27%.

This is the first time prices have risen on the GDT since early March, and mark a recover from the previous auction’s 13-year price low.

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