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 has risen 10.1% since the February 3 auction, with the average price now at US$3,366.
Across the board, prices were up. Cheddar gained the greatest ground with an average price of US$3,054, a 16.8% rise since the last auction. This was followed by whole milk powder, up 13.7% with an average price of US$3,272. Skim milk powder also saw gains.
Last night's results will be welcome news for farmers, many of whom are struggling with a combination of drought conditions and a lower than expected payout.
Key Results:
AMF index up 6.4%, average price US$4,314/MT
Butter index up 1.1%, average price US$3,823/MT
BMP index up 1.9%, average price US$2,674/MT
Ched index up 16.8%, average price US$3,054/MT
LAC not offered
RenCas index up 1.2%, average price US$8,897/MT
SMP index up 5.7%, average price US$2,744/MT
SWP index not available, average price not available
WMP index up 13.7%, average price US$3,272/MT
Full results have been published on www.GlobalDairyTrade.info.
