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 index fell 8.8% to an average price of US$3136 (NZ$4292) a tonne, down from US$3374 at the previous auction.
Last night’s auction is the first to be held since the revelation that someone had threatened to contaminate milk products, with the pest control poison 1080.
Whole milk powder slumped 9.6%.
Every other product traded also fell, with rennet casein down 15.2%, butter milk powder down 11.6%, butter down 9.4%, anhydrous milk fat down 8.4%, cheddar down 7.4%, and skim milk powder down 5.5%.
Just over 20,000 tonnes of product was traded at the latest auction.
Key Results
AMF index down 8.4%, average price US$3,877/MT
Butter index down 9.4%, average price US$3,555/MT
BMP index down 11.6%, average price US$2,635/MT
Ched index down 7.4%, average price US$3,130/MT
LAC not offered
RenCas index down 15.2%, average price US$7,507/MT
SMP index down 5.5%, average price US$2,731/MT
SWP index not available, average price not available
WMP index down 9.6%, average price US$2,928/MT
Full results have been published on www.GlobalDairyTrade.info.
