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 flagship whole milk powder price index was up 2.9%, to US$2760/tonne.
The GDT price index rose 1.4% at the latest auction, following a 3% cent dip in the previous auction- which ended a run of price increases. WMP prices had dipped 3.8% in the previous auction.
The latest price rise could be attributed to supply concerns out of New Zealand; prolonged wet weather in the North Island is affecting milk production.
Key results
AMF index up 1.1%, average price US$5,007/MT
Butter index up 2.6%, average price US$3,984/MT
BMP index up 0.2%, average price US$2,583/MT
Ched index down 3.7%, average price US$3,290/MT
LAC index up 5.6%, average price US$780/MT
RenCas index down 4.5%, average price US$6,286/MT
SMP index down 0.3%, average price US$2,204/MT
WMP index up 2.9%, average price US$2,760/MT
