Index left unchanged at latest Global Dairy Trade auction

Overall dairy prices have remained steady in the latest Global Dairy Trade auction - with no change across the board, following three consecutive increases.

Whole milk powder prices - the biggest influencer on Fonterra's farmgate milk price - recorded a slight dip, of 0.4 per cent, to an average US$3749/MT.

Prices for the other commodity groups all increased, including Fonterra's second biggest "reference" product – skim milk powder – which gained 0.5 per cent to an average US$3315/MT.

Cheddar rose 0.7 per cent to an average US$4297/MT; with Butter, Anhydrous Milk Fat and Lactose all close behind with 0.4 per cent lifts to average US$4878/MT, US$5,984/MT and US$1,188/MT respectively.

The biggest move, however, came from butter milk powder – up 9.7 per cent to an average US$3,688/MT, but with very little of the product on offer.

A total of 28,667 MT of product was sold - an increase of over 4000 MT from the previous event - attracting 126 successful bidders over 15 rounds.

Sweet whey powder was yet again not offered at this event.

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. This remained unchanged when Fonterra released their annual results last month.

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Overall, the result was "pretty benign across the board" but that didn't mean it should be dismissed, Fonterra chief executive Miles Hurrell said.

"We shouldn't look at a flat result and be disappointed, I think that everyone should be pretty excited about what they're seeing there," he told The Country's Jamie Mackay.