GDT: Dairy prices rise 1.6% in latest auction, WMP up 2.8%

Prices have risen again in the latest Global Dairy Trade auction, held overnight, with a 1.6% increase across the board.

This builds on a 1.1% lift at the previous event two weeks ago.

As a result, prices have lifted in seven of the last 12 auctions since the start of November.

There are only two more auctions until the end of the New Zealand dairy season.

There are only two more auctions until the end of the New Zealand dairy season. Photo / 123RF

Whole milk powder - which has the biggest impact on Fonterra’s farmgate milk price - was up 2.8%, to an average of US$4171/MT.

Skim milk powder - Fonterra’s second-biggest reference product – was down 2.3% to an average of US$2795/MT.

This comes after the previous auction where skim milk powder enjoyed the largest increase of 5.9%.

The only other product to drop was cheddar, dipping 1.8% to an average of US$4923/MT.

On the positive side, butter rose 1.5% to an average of US$7679/MT.

Anhydrous milk fat gained 2.1% to an average of US$6838/MT.

Mozzarella leapt an impressive 5.4% to an average of US$4763/MT, welcome news after a drop of 4.0% at the last event.

However, the biggest percentage jump by far came from lactose, with a whopping 22.0% leap to an average of US$1376/MT.

At the previous auction, lactose dropped 2.6%.

Butter milk powder was not available at this event.

A total of 16,718 MT of product was purchased by 115 successful bidders, compared to 17,643 MT and 123 winning bidders last time.

On March 20, Fonterra narrowed its farmgate milk price forecast for the 2024/25 season to between $9.70kgMS - $10.30kgMS, which retained a $10.00kgMS midpoint.

This follows an earlier increase on December 5, when Fonterra’s farmgate milk price forecast lifted to a range between $9.50 and $10.50kgMS, with a midpoint of $10.00kgMS.

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