GDT: Dairy prices slip 0.5% in the latest auction

GDT prices slipped again, following a 0.6% decline from the previous event. Photo / Brett Phibbs

Prices slipped again in the latest Global Dairy Trade auction, held overnight, with a 0.5% drop across the board.

This follows a 0.6% decline from the previous event two weeks ago.

Whole milk powder - which has the biggest impact on Fonterra’s farmgate milk price - dropped 2.2%, to an average of US$4061/MT.

This comes after a 0.2% dip two weeks ago.

Skim milk powder - Fonterra’s second-biggest reference product – rose 0.6%, to an average of US$2744/MT, better news from last event’s 2.5% drop.

Anhydrous milk fat was down 0.3% to an average of US$6681/MT and butter milk powder fell 1.8% to an average of US$3013/MT.

Cheddar recorded a modest 1.1% lift to an average of US$4915/MT and butter rose 2.7% to an average of US$7577/MT.

Mozzarella was up an impressive 7.9% to an average of US$4477/MT.

This comes after a run of negative results with mozzarella down 0.1% in the previous auction, another 0.1% in the event before that, and 0.3% on January 21.

However, the largest positive result was from lactose, which leapt a whopping 14.0% to an average of US$1158/MT.

There was 20,977 MT of product purchased by 126 successful bidders, compared to 22,651 MT and 120 winning bidders last time.

On December 5, Fonterra raised its farmgate milk price forecast for the 2024/25 season, to between $9.50 and $10.50 per kgMS, with a midpoint of $10.00 per kgMS.

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This follows an earlier increase on November 11, when Fonterra’s farmgate milk price forecast lifted to a range of $9.00 and $10.00 per kgMS, with a midpoint of $9.50 per kgMS.

The final farmgate milk price for the 2023-2024 season was $7.83 per kgMS milk solids.