Ornua PPI drops slightly for September

Ornua’s Purchase Price Index (PPI) has dropped slightly in the most recent index, according to Ornua.

The dairy exporter’s price index for September is 110.4 – adjusted from 111.1 for August.

This translates to 33.3c/L, VAT inclusive, based on Ornua’s product purchase mix and assumed costs of 6.5p/L.

The September 2018 Index reflects weaker butter and spot dairy prices, offsetting improved returns for cheese and powders, according to a spokesperson for Ornua.

While a decrease on last month, the September PPI still comes in as the third highest recorded in 2018, behind only January and August in first and second place respectively.

GDT downward trend continues

This follows on from an indifferent Global Dairy Trade (GDT) auction – Event 221 – last Tuesday (October 2), which saw the recent downward trend continue, concluding with the GDT Price Index down 1.9% on the previous sale.

Lasting for two hours and 28 minutes, the auction saw 170 participating bidders do battle across 15 rounds with 143 bidders emerging with winning offers.

A total of 41,981MT of product was sold on the day.

Key results:
  • AMF index down 4.4%, average price US$5,069/MT;
  • Butter index down 5.9%, average price US$4,016/MT;
  • BMP index up 3.6%, average price US$2,522/MT;
  • Ched index down 1.2%, average price US$3,468/MT;
  • LAC index up 0.6%, average price US$913/MT;
  • RenCas index up 3.0%, average price US$5,552/MT;
  • SMP index down 0.3%, average price US$1,982/MT;
  • SWP index not available, average price not available;
  • WMP index down 1.2%, average price US$2,753/MT.

Butter took a heavy knock, falling by 5.9% on the day, while Anhydrous Milk Fat (AMF) also took a hefty hit in index, reducing by 4.4%.

Buttermilk powder (BMP), however, saw a bounce of 3.6%, while Rennet Casein (RenCas) also saw a rise of 3%.

The price for Sweet Whey Powder (SWP) was once again not available on the day.