Global Dairy Trade auction dips slightly

Prices in the latest Global Dairy Trade auction have dipped for the second event in a row, with a 0.7 per cent drop across the board.

Whole Milk Powder - which has the biggest influence on Fonterra's farmgate milk price - rose 0.7 per cent to an average US$4,115/MT, while Skim Milk Powder - Fonterra's second biggest reference product - lifted 2.0 per cent to an average US $3,433/MT.

Butter Milk Powder posted the biggest increase - up 14.4 per cent to an average US$4,222/MT, but with very little product on offer.

All other reference products fell, with the biggest drop from Butter - down 12.1 per cent to an average US$5,035/MT.

Cheddar slid 4.5 per cent to an average US$4,274/MT, followed up Anhydrous Milk Fat, which eased 4.2 per cent to an average US$5,730/MT; with Lactose down 2.0 per cent to an average US$1,236/MT.

Listen to Jamie Mackay interview Fonterra chief financial officer Marc Rivers about the GDT below:

A total of 22,020MT of product was sold, to 108 successful bidders.

In an update on March 5, Fonterra lifted its 2020/21 forecast farmgate milk price range to $7.30-$7.90 per kg, up from $6.90-$7.50 per kg.

The midpoint of the range, off which farmers are paid, increased to $7.60 per kg.