Signs of dairy market relief at latest Fonterra auction
Fonterra Global Dairy Trade for dairy products saw prices rise by 1.4% in the latest auction, which took place this week. According to DairyCo it suggests some potential signs of relief for beleaguered dairy markets.
Butter and WMP were up 3.9% and 3.1% respectively while SMP fell 3.6%. DairyCo says although this is positive news for the industry, more than one auction result is needed to provide a clear sign that the recent downward trend may be reversing in the coming months.
The rise this week comes on the back of an 7.3% fall just two weeks ago. Today’s, increase was driven by a 3.1% rise in the auction index for WMP, although prices for other products declined from the previous auction.
The average price for all products across all contracts now stands at US$2,640/tonne.
Key points from today’s trade includes:
- The gDT TWI index rose by 1.4% compared to the previous auction.
- The average weighted butter price was up 3.9% from the last auction, at $2,614/tonne.
- WMP averaged $2,503/tonne across all contracts, a decrease of 3.1% on the last auction.
- The weighted SMP price was down 3.6% from the previous auction, at $2,462/tonne.
- The price for Cheddar was down 1.% on the last auction, at $3,007/tonne.
- AMF (Anhydrous Milk Fat) price increased by 7.4% on the previous auction, to an average of $3,346/tonne.
- The BMP (Butter Milk Powder) price fell by 3.8% to $2,614/tonne.
- Prices for Casein averaged $7,780/tonne, down 5.3% from the previous auction