The Global Dairy Trade auction dipped slightly this week after a 5.5% increase two weeks ago. Photo / DairyNZ
There has been a small dip in prices in the latest Global Dairy Trade auction, held overnight, with a 0.4% decrease across the board.
This is after an impressive jump of 5.5% at the previous event two weeks ago.
Whole milk powder - which has the biggest impact on Fonterra’s farmgate milk price - dropped 2.5% to an average of US$3396/MT. This follows a whopping 7.2% increase at the previous auction.
Skim milk powder - Fonterra’s second-biggest reference product – rose 4.5%, to an average of US$2753/MT.
Butter milk powder recorded the largest increase at this event - jumping 8.4%, to an average of US$3024/MT, with mozzarella not far behind on a 7% boost to an average of US$5145/MT.
Cheddar was up 0.9%, to an average of US$4324/MT.
Anhydrous milk fat rounded out the positive reference products, rising a modest 0.7% to an average of US$7311/MT.
On the negative side, butter fell 0.9% to an average of US$6675/MT.
However, the biggest percentage fall came from lactose, which plunged 8.9% to an average of US$863/MT.
A total of 38,346 MT of product was purchased by 128 successful bidders, compared to 34,916 MT and 112 winning bidders last time.
On August 23, Fonterra announced its farmgate milk price forecast of between $7.75/kgMS and $9.25/kgMS, with a midpoint of $8.50/kgMS.
Fonterra’s opening farmgate milk price for the new 2024-2025 season, was announced on May 29, with a range of $7.25 per kgMS - $8.75 per kgMS and a midpoint of $8.
The co-op also narrowed its 2023-2024 season forecast in May to between $7.70 to $7.90 per kgMS, leaving the midpoint unchanged at $7.80.