GDT: Small lift in dairy prices but whole milk powder down 1.6%

There was a modest lift in prices in the latest Global Dairy Trade Auction.

Prices have risen slightly in the latest Global Dairy Trade auction, held overnight, with a 0.4% increase across the board.

Any gain will be welcome after the 6.9% drop two weeks ago.

However, whole milk powder dropped 1.6% to an average of US$3142/MT.

Whole milk powder has the biggest impact on Fonterra’s farmgate milk price and this is the third consecutive auction where prices have fallen.

Skim milk powder - Fonterra’s second-biggest reference product – also had a negative result, dipping 1.1%, to an average of US$2566/MT.

Cheddar recorded the largest increase - up an impressive 6.2%, to an average of US$4217/MT - although this followed a 6.9% plummet in the previous auction.

Anhydrous milk fat was also positive, up 4.0% to an average of US$6764/MT. However, it tanked 10.7% two weeks ago.

After a 10.2% plunge at the last event, butter had a modest rise of 0.8% to an average of US$6606/MT.

Lactose was down 0.6% to an average of US$792/MT.

Mozzarella fell 0.8% to an average of US$4225/MT. It was not available at the last event.

Butter milk powder was not available at this event.

A total of 22,954 MT of product was purchased by 118 successful bidders, compared to 24,138 MT and 113 winning bidders last time.

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

Fonterra also narrowed its 2023-2024 season forecast to between $7.70 to $7.90 per kgMS, leaving the midpoint unchanged at $7.80.