Global Dairy Trade: Prices drop 3.3 per cent across the board

The third Global Dairy Trade auction for the new season's overall index dropped 3.3 per cent. Photo / FileFile photo / Brett Phibbs

Prices have dipped in the latest Global Dairy Trade auction, held overnight, with a 3.3 per cent decline across the board.

All prices were negative with butter and butter milk powder taking the biggest tumble.

On a somewhat brighter note, whole milk powder had the smallest dip at 0.4 per cent to an average of US$3149/MT.

Skim milk powder - Fonterra’s second-biggest reference product – was down a hefty 6.0 per cent from two weeks ago, to an average of US$2525/MT.

However, the biggest percentage fall came from butter milk powder, which plunged a whopping 11.4 per cent to an average of US$2189/MT - it was not offered at the last event.

Butter followed close behind, falling 10.3 per cent, to an average of US$4842/MT - after jumping 5.5 per cent to an average of $5379/MT two weeks ago.

Anhydrous milk fat dropped 3.4 per cent with an average of US$4579/MT.

Cheddar continued the downward trend with a 3.1 per cent fall, to an average of US$4386/MT.

Lactose was not available at this event.

24,837 MT of product was purchased by 140 successful bidders, compared to 20,372 and 153 winning bidders last time.

On May 25, Fonterra announced an opening 2023/24 season forecast Farmgate Milk Price of between $7.25 - $8.75 per kgMS, with a midpoint of $8.00 per kgMS.

The co-op also narrowed the forecast range for the 2022/23 season from between $8.00 - $8.60 per kgMS to $8.10 - $8.30 per kgMS and reduced the midpoint from $8.30 per kgMS to $8.20 per kgMS.

FY23 full-year forecast normalised earnings were increased to between 65 - 80 cents per share, from 55 - 75 cents per share.