The Global Dairy Trade had its eighth consecutive fall last week putting more downward pressure on Fonterra’s $6.75/kgMS milk price forecast, says BNZ senior economist Doug Steel.
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.
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