GDT: Dairy prices dip 2.3 per cent in latest auction

There was a 2.3 per cent dip across the board at the latest GDT auction.

Prices have dropped in the latest Global Dairy Trade auction, held overnight, with a 2.3 per cent decline across the board.

This is the first negative event of the 2024 calendar year, with the index kicking off the new year with a 1.2 per cent bump on January 3, followed by a 2.3 per cent gain on January 17, a 4.2 per cent increase at the last event on February 7 and a modest 0.5 per cent lift on February 21.

Whole milk powder, continued a downward trend (-1.8 per cent at the previous event), dipping 2.8 per cent to an average of US$3286/MT.

Skim milk powder - Fonterra’s second-biggest reference product – had a significant drop of 5.2 per cent, to an average of US$2640/MT.

Butter fell 1.0 per cent to an average of US$6461 per cent, after enjoying an impressive 10.3 per cent hike on February 7.

Mozzarella also slightly dipped, after its first positive result at the last event, losing 0.4 per cent to an average of US$3945/MT.

This was the sixth event for the product after it debuted on December 6 at an average of US$4005/MT.

Cheddar bucked the trend with a 4.0 per cent increase, to an average of US$4277/MT - welcome news after it plunged 7.6 per cent in the previous auction.

Butter milk powder was also up, with a 3.7 per cent jump to an average of US$2504/MT, meanwhile, anhydrous milk fat rose 1.4 per cent to an average of US$6637/MT.

21,235 MT of product was purchased by 125 successful bidders, compared to 24,306 MT and 101 winning bidders last time.

On February 12, Fonterra raised its forecast farmgate milk price for 2023/24 - to a range of $7.30–$8.30 per kgMS, with a midpoint of $7.80.

This is 30 cents up on Fonterra’s previous $7.50 midpoint, announced on December 7, with a range of $7.00–$8.00 per kgMS.

Fonterra’s previous $7.25 midpoint, was announced on October 9, with a range of $6.50–$8.00 per kgMS.

This followed downgrades on August 18 to between $6.00 and $7.50 per kgMS, with a midpoint of $6.75, and August 4 of between $6.25 to $7.75 per kgMS.