GDT: Overall steady result but cheddar takes a plunge

There wasn't much movement in the latest GDT auction - except for cheddar.

Prices have remained steady in the latest Global Dairy Trade auction, held overnight, with a 0.1 per cent increase across the board.

It is a small gain on the 2.8 per cent rise from the last event two weeks ago.

Whole milk powder - which has the biggest impact on Fonterra’s farmgate milk price - recorded a 0.4 per cent lift, to an average of US$3269/MT.

There was no percentage change for skim milk powder - Fonterra’s second-biggest reference product – with an average of US$2541/MT.

However, this was not the case for cheddar which plummeted 8.5 per cent to an average of US$3974/MT.

This is a far cry from the previous event when cheddar recorded the largest increase - up 4.1 per cent, to an average of US$4340/MT.

Butter dipped 1.4 per cent to an average of US$6546/MT and anhydrous milk fat (AMF) increased by 1.7 per cent to an average of US$7062/MT.

It is the 16th consecutive auction in which the AMF index has recorded an increase.

Lactose dropped 1.3 per cent to an average of US$740/MT, while butter milk powder was not available at this event.

Mozzarella fell 3.8 per cent to an average of US$3755/MT.

A total of 17,654 MT of product was purchased by 105 successful bidders, compared to 18,737 MT and 108 winning bidders last time.

On March 21, Fonterra narrowed its forecast farmgate milk price range to $7.50 per kgMS - $8.10 per kgMS, with a midpoint of $7.80.

As a result, the midpoint remained unchanged from the co-op’s previous milk price announcement on February 12, when the range was $7.30-$8.30 per kgMS.

This followed downgrades on December 7 to between $7.00-$8.00 per kgMS, with a midpoint of $7.50, and October 9 to between $6.50-$8.00 per kgMS, with a midpoint of $7.25.