Strong production, tested demand send milk prices crashing
Strong global milk production and rebalancing of demand among key buyers has delivered one of the biggest drops in whole milk powder prices in recent years.
The GDT price index dropped 5% compared to the previous auction.
Surprisingly, whole milk powder prices dropped a whopping 7.3% to US$2905/MT.
According to Westpac head of NZ Strategy Imre Speizer, last night’s GDT result was “a decent surprise relative to futures market predictions of a 1% fall”.
“One reason could be trade war fears, with local production increases a weaker secondary explanation,” he says.
Key results
AMF index down 1.7%, average price US$5,937/MT
Butter index down 4.0%, average price US$5,390/MT
BMP index up 6.4%, average price US$2,480/MT
Ched index down 4.3%, average price US$3,713/MT
LAC index not available, average price not available
RenCas index up 3.6%, average price US$5,089/MT
SMP index down 4.6%, average price US$1,913/MT
SWP index not available, average price not available
WMP index down 7.3%, average price US$2,905/MT
