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.
Although the GDT price index fell 1.4% at the overnight auction, the price for New Zealand's key product, whole milk powder (WMP), rose 0.7%.
The drop comes on the back of two consecutive increases. Overall, prices fell by 1.4% percent to $US2203 a tonne.
But farmers will be happy with the flagship WMP price, which rose to US$2176/tonne.
The latest rise in WMP is the third in a row, although not as solid as the 7.5% lift in the commodity at auction two weeks ago. Farmer returns are largely based on WMP prices.
Key Results
AMF index down 1.6%, average price US$3,195/MT
Butter index down 5.5%, average price US$2,601/MT
BMP index down 5.5%, average price US$1,366/MT
Ched index up 1.8%, average price US$2,727/MT
LAC index down 2.7%, average price US$693/MT
RenCas index up 3.5%, average price US$5,024/MT
SMP index down 3.6%, average price US$1,676/MT
WMP index up 0.7%, average price US$2,176/MT
