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.
Compared to the last auction, the price index rose 0.3%.
However, the flagship whole milk powder prices dropped 1.6% despite futures pricing a 3% rise.
Westpac senior market strategist Imre Speizer says fats outperformed but powders disappointed.
“The GDT dairy auction resulted in prices overall little changed – the index up 0.3%; WMP down 1.6% (compared to futures pricing a 3% rise),” he says.
Butter was up 3.8% to US$5954/MT; WMP US$3100/MT.
Key Results
AMF index up 3.6%, average price US$6,402/MT
Butter index up 3.8%, average price US$5,954/MT
BMP index down 10.1%, average price US$2,026/MT
Ched index up 2.5%, average price US$4,118/MT
LAC index up 5.1%, average price US$791/MT
RenCas index up 1.2%, average price US$6,316/MT
SMP index down 1.2%, average price US$1,944/MT
WMP index down 1.6%, average price US$3,100/MT
