Monday, November 12, 2018
 Global Dairy Prices Continue To Fall at Fonterra Auction  

International dairy prices continued to fall at the second GlobalDairyTrade auction of the new year. The GDT Price Index, which covers a variety of products and contract periods, dropped 1.4 percent, with an average selling price of $2,405 per ton, at the January 19th auction. This follows a 1.6 percent drop at the first sale of the year on January 5th.


Whole milk powder prices, the key component of Fonterra's milk price forecast, eased in price by 0.5 percent to an average of $2,188 a ton. Another important product, skim milk powder, fell by 3.2 percent in price to an average of $1,835 a ton.


The biggest fall in price at the GDT auction was Rennet Casein, with a decrease of 7.8 percent. Cheddar prices also fell by 3.4 percent, and Butter fell by 5.9 percent.


"Global demand for dairy commodities continues to be weak relative to global milk supply," said New Zealand's AgriHQ dairy analyst Susan Kilsby. 


Analysts say ongoing weakness in dairy prices may lead Fonterra to lower its forecast payout for its 10,500 farmer shareholders. Fonterra currently expects to pay its farmers NZ$4.60 ($2.98) per kilo of milk solids, a level that is already below break-even for most. 


There were 156 bidders trading 21,930 metric tons of dairy product. The next auction is scheduled for February 2, 2016.

Source: GlobalDairyTrade

Posted on Thursday, January 21, 2016 (Archive on Thursday, January 28, 2016)
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