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 rose 16.5% at last night’s auction, with products fetching an average price of US$2568/MT.
Fonterra’s key product Whole Milk Powder saw the biggest gain, the average price rising a massive 20.6% to US$2,495/MT.
Skim Milk Powder also saw a large increase of 17.0%, to an average price of US$1,992/MT.
Most other products saw gains. Anhydrous Milk Fat was up 13.7%, to US$3,440/MT, followed by Butter, which rose 13.3%, to US$3,108/MT and Cheddar up 10.7%, to US$3,206/MT.
Lactose and Rennet Casein saw minor gains, with the prices indexes up 3.1%, (US$499/MT) and 0.6%, (US$5,807/MT), respectively.
Butter Milk Powder was down 1.9%, to an average price of US$1,719/MT.
The auction saw 36,050 tonnes sold, up slightly on the last auction.
