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 GDT price index was down 2.4% compared to the previous auction; flagship whole milk powder price was down 2.7% to US$3037/MT.
The futures market had predicted a 6% rise in WMP prices.
Westpac senior market strategist Imre Speizer says the GDT result was disappointing.
“GDT dairy auction saw prices fall 2.4% overall, with whole milk powder down 2.7% - a disappointing result given futures markets had earlier priced a 6% rise,” he says
The overnight auction also saw fat prices ease from their record highs.
Key results
AMF index down 3.4%, average price US$6,504/MT
Butter index down 3.6%, average price US$5,837/MT
BMP index down 10.3%, average price US$1,804/MT
Ched index up 1.9%, average price US$4,109/MT
LAC index not available, average price not available
RenCas index up 0.9%, average price US$6,123/MT
SMP index down 1.4%, average price US$1,895/MT
WMP index down 2.7%, average price US$3,037/MT
