Slight price rise for Global Dairy Trade auction

Just as the rest of the country saw their move down a Covid 19 alert level marked by an increase in the Global Dairy Trade auction, the same can be said of Auckland, whose descent from Level 4 to Level 3 has been heralded by the second positive event in a row.

Prices in the latest auction, held overnight, settled on a 1.0 per cent increase across the board.

Whole milk powder - which has the biggest influence on Fonterra's farmgate milk price - rose 2.2 per cent to an average US$3777/MT, following a 3.3 per cent increase at the previous auction.

Meanwhile skim milk powder - Fonterra's second biggest reference product - lifted 0.9 per cent to an average US$3302/MT, a further gain from the 7.3 per cent jump last auction.

The only other product to climb was lactose, which followed up a 6.4 per cent boost in the last event, with a 1.3 per cent increase, to an average US$1167/MT.

Butter softened slightly - down 1.9 per cent to an average US$4857/MT, after a 3.7 per cent lift in the last event, while cheddar followed suit - down 1.2 per cent to an average US$4,274/MT, after a 3.6 per cent lift last time.

Anhydrous milk fat remained flat, with an average US$5962/MT.

Sweet whey powder was yet again not offered at this event, and neither was butter milk powder.

The volume of product traded remained similar to the previous event, at 24,476 MT sold to 112 successful bidders.

On May 26, Fonterra announced an opening forecast Farmgate Milk Price range for the 2021/22 season of $7.25 - $8.75 per kgMS, with a midpoint of $8 per kgMS.

The dairy giant is due to release their annual results tomorrow.