Almost all products took a nosedive in the lastest Global Dairy Trade Auction. Photo / Duncan Brown
Prices took a nosedive in the latest Global Dairy Trade auction held overnight, with a 6.9% drop across the board.
It is the largest fall since August and dramatically follows a modest 0.5% dip from two weeks ago.
Whole milk powder, which has the biggest impact on Fonterra’s farmgate milk price, fell 4.3% to an average of US$3218/MT.
Skim milk powder, Fonterra’s second-biggest reference product, fared worse, plunging 6.1% to an average of US$2586/MT.
Cheddar also tanked — down 6.9% to an average of US$3980/MT.
Butter milk powder also took a tumble, dropping 5.1% to an average of US$2672/MT.
However, the largest declines were seen in butter and anhydrous milk fat.
Anhydrous milk fat had the biggest percentage fall of 10.7%, to an average of US$6517/MT, and butter was not far behind, plummeting 10.2% to an average of US$6546/MT.
The only positive result came from lactose, with a slight lift of 0.6% to an average of US$804/MT.
Mozzarella was not available at this event.
A total of 24,138MT of product was purchased by 113 successful bidders, compared with 16,787MT and 106 winning bidders last time.
On May 29, Fonterra announced an opening farmgate milk price for the new 2024-25 season with a range of $7.2-$8.75 per kgMS and a midpoint of $8.
Fonterra also narrowed its 2023-24 season forecast to $7.70-$7.90/kgMS, leaving the midpoint unchanged at $7.80.