Butter increased 0.5 per cent to an average of $US5088/MT – finally passing the $5000 mark once again, while anhydrous milk fat rose 1.8 per cent to an average of US$4728/MT.
Lactose figures were unavailable and sweet whey powder was not offered at this event.
23,119 MT of product was purchased by 113 successful bidders.
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.
Fonterra’s departing Chief Operating Officer, Fraser Whineray, said farmers shouldn’t be worried despite the drop.
“I think 0.9 per cent down is a pretty small movement in the context of some of the volatility we’ve seen over the last couple of years,” he told The Country’s, Jamie Mackay.
Buying enthusiasm from South East Asia was “particularly strong” and it was good to see prices rise for anhydrous milk fat and cheddar.
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However, declines in six of the last eight events showed a “worrying downward trend,” Mackay said.
He wondered if the 2023/24 season midpoint of $8.00 per kgM was under threat.
Whineray said it was too early in the season to make that kind of prediction.
“[While] there has been a [downward] trend, it is also coming off an extremely high position.”
He said Fonterra was mostly concerned about high on-farm costs.
“We’re still very focused in trying to make sure we maximise everything for the bucket of milk, plus earnings.”
Also in today’s interview: Whineray took a look at how China’s economy, and global milk production, could affect the market.
