GDT: Dairy prices up 0.8% across the board

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There’s been a small lift in the latest Global Dairy Trade auction, held overnight, with a 0.8% increase across the board.

However, the modest rise in prices is welcome news off the back of peak volumes on the platform and following the 0.4% drop at the previous event.

Further good news came from whole milk powder - which has the biggest impact on Fonterra’s farmgate milk price - as it rose 1.5%, to an average of US$3448/MT.

This comes after a 2.5% dip at the last event.

Skim milk powder - Fonterra’s second-biggest reference product – was up 2.2%, to an average of US$2809/MT.

Cheddar was also up at this event, with a 2.9% increase, to an average of US$4441/MT.

Lactose did even better, rising 3.5% to an average of US$896/MT.

However, mozzarella gained the most at this event, lifting 4.5% to an average of US$5351/MT.

This follows an impressive 7% increase from the previous auction for mozzarella.

On the negative side, butter dipped 1.7% to an average of US$6546/MT, following a drop of 0.9% at the last event.

Anhydrous milk fat was also down, dropping 1.2% to an average of US$7220/MT.

Butter milk powder was not available at this event - it had the largest increase at the previous auction, with an 8.5% jump.

A total of 38,8147 MT of product was purchased by 127 successful bidders, compared to 38,346 MT and 128 winning bidders last time.

On August 23, Fonterra announced its farmgate milk price forecast of between $7.75/kgMS and $9.25/kgMS, with a midpoint of $8.50/kgMS.

Fonterra’s opening farmgate milk price for the new 2024-2025 season, was announced on May 29, with a range of $7.25 per kgMS - $8.75 per kgMS and a midpoint of $8.

The co-op also narrowed its 2023-2024 season forecast in May to between $7.70 to $7.90 per kgMS, leaving the midpoint unchanged at $7.80.