Global Dairy Trade price index slumps again
The latest Global Dairy Trade event, which took place today, has seen most prices slump, with the overall index price down 5pc.
Butter prices were down 4pc, with an average price of US$5,390/MT paid, while cheddar was down 4.3pc.
Skim milk power prices were down 4.6pc, at an average price US$1,913/MT, while whole milk prices were down 7.3pc, average price US$2,905/MT.
Further, sales of whole milk powder stocks were back significantly compared to the total quantity sold during the previous 12 months.
It's the third month in a row where dairy product prices have slipped and comes as Fonterra, the largest dairy processor in New Zealand announced that its total New Zealand milk production increased 6pc in May, helped by favourable autumn weather conditions.
It said that global dairy prices have been undercut by increased production and predicted that today's GDT would fall.
Last month, the GDT Price Index dipped 1.2pc, with an average selling price of $3,481 per tonne, in the auction held in the early hours of the morning, after slipping 1.3pc off nine-month highs at the previous sale.