Futures markets don’t always get it right.

So it has proved with the latest GlobalDairyTrade (GDT) auction, for which SGX NZX futures were anticipating price gains.

In fact, values as measured by the GlobalDairyTrade index fell by 4.6% to the lowest in 19 months, justifying the scepticism of investors such as StoneX who had cautioned over some negative market dynamics.

Below a summary of the key moves at Tuesday’s auction, which look likely to set the scene for a weak session for futures on Wednesday.


Whole milk powder prices fell by 4.4% to $3,421 a tonne, a two-month low.

Skim milk powder prices slumped by 6.9% to $3,250 a tonne, a 14-month low.

Cheddar prices dropped by 3.9% to $4,769 a tonne, a one-year low.

Fats proved relatively resilient, with anhydrous milk fat easing by 2.6% to a two-month low of $5,661 a tonne.

Butter also shed 2.6% although, after a steep decline at the last auction, that left it at a 14-month low of $4,851 a tonne.