GDT: Prices lift slightly, but whole milk powder dips

There was a 0.5 per cent lift across the board at the latest GDT auction.

There was a modest shift in the latest Global Dairy Trade auction held overnight, but still a positive one, with a 0.5 per cent lift across the board.

This is the fourth positive 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, and a 4.2 per cent increase at the last event on February 7.

Whole milk powder was down 1.8 per cent to an average of US$3388/MT, after a 3.4 per cent increase two weeks ago.

Skim milk powder, Fonterra’s second-biggest reference product, rose 1.3 per cent and to an average of US$2788/MT.

Lactose dipped 1 per cent to an average of US$785/MT.

However, the biggest percentage fall came from cheddar, which plunged 7.6 per cent, and over US$300/MT to an average of US$4143/MT, after a rise of 6.3 per cent at the last event.

Butter, which stole the show two weeks ago with an impressive 10.3 per cent hike, rose only slightly this time, up 0.1 per cent to an average of US$6526/MT.

Anhydrous milk fat was the star of the stable, jumping 8.6 per cent to an average of US$6552/MT, building on the 3.3 per cent rise at the previous auction.

Meanwhile, mozzarella finally had a positive result since being introduced to the GDT auction platform, rising 5.3 per cent to an average of US$3960/MT.

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

Butter milk powder figures were not available at this event.

24,306 MT of product was purchased by 101 successful bidders, compared with 24,836 MT and 104 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¢ up on Fonterra’s previous $7.50 midpoint, announced on December 7, with a range of $7–$8/kgMS.

Fonterra’s previous $7.25 midpoint, was announced on October 9, with a range of $6.50–$8/kgMS.

This followed downgrades on August 18 to $6-$7.50/kgMS, with a midpoint of $6.75, and August 4 of $6.25-$7.75/kgMS.