Global Dairy Trade auction slumps by 3% as Kiwi milk production recovers
Today's Global Dairy Trade (GDT) auction concluded with prices down 3.2%.
The news comes following reports from Fonterra that New Zealand milk supplies may not be as low as forecast this season.
Notable from today’s GDT auction is that Skimmed Milk Powder prices were 3.8pc lower, while Whole Milk Powder Prices fell by 3.7pc.
- AMF index down 1.3%, average price US$5,693/MT
- Butter index up 0.2%, average price US$4,598/MT
- BMP index down 12.9%, average price US$2,090/MT
- Ched index down 5.3%, average price US$3,590/MT
- LAC index up 6.8%, average price US$966/MT
- RenCas index down 5.8%, average price US$6,135/MT
- SMP index down 3.8%, average price US$2,574/MT
- WMP index down 3.7%, average price US$3,189/MT
Fonterra New Zealand milk collections have shown signs of recovery following unfavourable weather conditions throughout the peak months, according to a recent update by the company.
This has meant season‑to‑date volumes have remained 5% behind last season. The revision factors in drought conditions in Northland.
Fonterra has revised the forecast milk collection for the 2016/17 season to be down 5% on last season from the previous forecast decline of 7%.
Fonterra’s milk collection across New Zealand for the eight months to January 31 reached 1,053m kgMS, 54m kgMS lower than last season.