Positive Global Dairy Trade result an early Christmas present for farmers

Another positive GDT result is a welcome Christmas present for Kiwi dairy farmers. Photo / Brad Markham

Farmers will be feeling a little more festive this morning, as the latest Global Dairy Trade auction, held overnight, rose 2.3 per cent across the board.

It’s the second consecutive positive result, with the index gaining 1.6 per cent on December 6, after a flat November 22 auction.

On the up was whole milk powder, which climbed 2.9 per cent to an average of US$3207/MT.

On the slide was skim milk powder - Fonterra’s second-biggest reference product – which dipped 1.3 per cent to an average of US$2620/MT and mozzarella - which was offered for the first time last auction - down 1.1 per cent to an average of US$3960/MT.

Meanwhile, butter and cheddar were the stars of this auction.

Chedder bounced an impressive 6.9 per cent to an average of US4265/MT, a welcome return to form after plunging 9.7 per cent to US$3637 a tonne in November.

However, butter stole the show with a whopping 9.9 per cent rise to an average of US$5458/MT.

Anhydrous milk fat rose slightly - up a modest 0.2 per cent to an average of US$5578/MT, while butter milk powder indices were not available.

A total of 27,379 MT of product was purchased by 108 successful bidders, compared to 29,559 MT and 123 winning bidders last time.

On December 7, Fonterra raised its forecast farmgate milk price for 2023/24 - to a range of $7.00–$8.00 per kgMS, with a midpoint of $7.50.

This is 25 cents up on Fonterra’s previous $7.25 midpoint, announced on October 9, with a range of $6.50–$8.00 per kgMS.

This followed downgrades on August 18 to between $6.00 and $7.50 per kgMS, with a midpoint of $6.75, and August 4 of between $6.25 to $7.75 per kgMS.

Jarden’s Head of Derivatives, Mike McIntyre said the auction prices showed “a return to a healthier level” following an almost ten-year low earlier this season.