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 overall price index fell 9.3% to US$1,815/MT at last night’s auction, with the biggest decline seen in Skim Milk Powder, which dropped a massive 14.4% to an average price of US$1,419/MT.
Fonterra’s other key product Whole Milk Powder (WMP) also showed significant losses, falling 10.3% to US$1,590/MT.
Other products also fared poorly with the Anhydrous Milk Fat index dropping 11.7% to US$2,253/MT, Butter down 6.1%, with an average price of US$2,293/MT and Butter Milk Powder falling 5.1%, to US$1,700/MT.
Rennet Casein saw a decline of 2.7% to an average price of US$5,289.
Cheddar was the only product to gain ground, rising just 0.2% to US$2,663.
Lactose remained unchanged at US$535/MT.
Some 46,527 tonnes of product was traded at the auction, up from 31,691 tonnes at the 16th July sale.
This is the tenth consecutive fall for the GDT, which has been in a downward trend since March.
