GDT: Dairy prices drop, breaking four-event rise

The GDT had been steadily rising after a 7.4 per cent drop on August 15. Photo / Christine Cornege

Prices have dipped in the latest Global Dairy Trade auction, held overnight, with a 0.7 per cent decline across the board.

This breaks a four-gain streak for the GDT, which has been steadily rising after a 7.4 per cent drop on August 15.

Whole milk powder declined 2.7 per cent, to an average of US$2971/MT and butter dropped 1.6 per cent to an average of US$4890/MT.

Despite this dip and the overall percentage fall - all other commodities rose in the latest event.

Skim milk powder - Fonterra’s second-biggest reference product – was up 2.3 per cent to an average of US$2724/MT.

Anhydrous milk fat rose 3.1 per cent with an average of US$5489/MT.

Cheddar climbed 4.5 per cent, to an average of US$4042/MT, and butter milk powder also gained 3.5 per cent to an average of US$2323/MT.

However, the biggest jump was lactose, which leapt a massive 19.2 per cent to an average of US$718/MT.

34,514 MT of product was purchased by 114 successful bidders - very similar to the 35,974 MT of product and 117 winning bidders at the last event, which was on October 17.

On October 9, Fonterra raised its forecast farmgate milk price for 2023/24 - to a range of $6.50–$8.00 per kgMS, with a midpoint of $7.25.

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.