Milk Glut Drags Fonterra Forecast Down to $9.20/kgMS
A milk glut around the world shows no sign of easing, putting downward pressure on farmgate milk prices for the next few months.
The overnight Global Dairy Trade (GDT) auction has delivered another solid result.
The GDT price index rose 4.8%, its fifth straight rise.
More importantly for farmers, whole milk powder price rose 2.2% to a four-year high of US$3,380/MT.
Fonterra uses WMP price as a benchmark to set its farm gate milk payout.
Key Results
AMF index up 17.2%, average price US$5,398/MT
Butter index up 4.6%, average price US$4,735/MT
BMP not offered
Ched index down 0.3%, average price US$4,082/MT
LAC index up 6.6%, average price US$1,173/MT
SMP index up 7.0%, average price US$3,243/MT
SWP not offered
WMP index up 2.2%, average price US$3,380/MT
