Global Dairy Trade: Prices remain flat in latest event

There's been a 0.0 per cent change in the GDT price index from the previous event. File photo / Christine McKay

There’s been no change across the board in the latest Global Dairy Trade auction, held overnight.

Falls in skim milk powder and cheddar were balanced by a strong return for butter, leading to a solid result for an event where prices were predicted to drop.

Whole milk powder didn’t budge, remaining at an average of US$3171/MT.

However, Fonterra’s second-biggest reference product – skim milk powder, dropped 2.3 per cent to an average of US$2667/MT.

Butter rose the most, jumping 5.5 per cent to an average of $5379/MT, a far better result than the 0.5 per cent gain from the previous event.

Anhydrous milk fat had a modest rise of 0.5 per cent to an average of US$4758/MT.

Cheddar had the biggest fall, dropping 3.3 per cent, to an average of US$4533/MT, down from its impressive 7.4 per cent jump, from two weeks ago.

Butter milk powder and lactose were not available at this event.

20,372 MT of product was purchased by 153 successful bidders, compared to 23,119 MT and 113 winning bidders last time.

Of the last 12 GDT events, including today’s, there have been eight decreases, three increases and one unchanged index.

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.