SMP index up 6.5%, average price US$2,329/MT
WMP index up 19.8%, average price US$3,317/MT
The latest figures from New Zealand show that Fonterra’s milk collections were back 2pc in September, while its Australian collections dropped 9pc.
The figures for September show that the wet spring the North Island experience had a knock-on effect on production and in turn the country’s main processor Fonterra has reduced its forecasted milk volumes.
It said that dairy milk volumes across the central and upper North Island were down significantly in the early part of October and this had continued, particularly in the main dairying region of Waikato, where dairy milk volumes are down 14pc on last year. Some 34pc of New Zealand’s dairy herds are located in the region.
Now it is predicting that it will take in 1.46m kg of milk solids, down from a previously predicted intake of 1.523m kg.
Meanwhile, Fonterra Australia has advised suppliers that it has increased its average farmgate milk price and increased its forecast closing price for the season.
Fonterra Australia Managing Director René Dedoncker said that this revised price reflected the strengthening global dairy prices.
“Although the global market remains volatile, since the beginning of the season, global milk supply has continued to decline significantly while demand has remained relatively stable.
“We have seen positive movement in GlobalDairyTrade auction prices through August and September, with a 26pc increase in the GDT price index since July, although the strong Australian dollar has offset some of the commodity market gains.”