Soaring butter prices may see next season’s milk price go beyond $7/kgMS – even as high as the mid sevens.
The Global Dairy Trade (GDT) price index fell 1.9% overnight, compared to the previous auction.
Whole milk powder price dropped 1.2% to US$2753/metric tonne, causing further downward pressure on forecast milk payouts.
Westpac’s head of NZ strategy, Imre Speizer says supply expectations may have weighed on the latest GDT auction.
He notes that growing conditions in NZ are good.
More milk out of NZ means more dairy products available on the global market, causing prices to dip.
AMF index down 4.4%, average price US$5,069/MT
Butter index down 5.9%, average price US$4,016/MT
BMP index up 3.6%, average price US$2,522/MT
Ched index down 1.2%, average price US$3,468/MT
LAC index up 0.6%, average price US$913/MT
RenCas index up 3.0%, average price US$5,552/MT
SMP index down 0.3%, average price US$1,982/MT
SWP index not available, average price not available
WMP index down 1.2%, average price US$2,753/MT