Global Dairy Trade takes another major hit
Dairy product prices have fallen significantly again at the most recent Global Dairy Trade (GDT) auction.
The event represents the second negative auction for prices in 2015.
Average prices paid at the dairy auction fell 10.8% on the last event held two weeks previously which was down 8.8% on February returns.
- AMF index down 5.3%, average price US$3,663/MT
- Butter index down 7.6%, average price US$3,259/MT
- BMP index down 25.1%, average price US$2,130/MT
- Ched index down 10.5%, average price US$2,787/MT
- LAC not offered
- RenCas index down 8.0%, average price US$6,980/MT
- SMP index down 9.9%, average price US$2,467/MT
- SWP not offered
- WMP index down 13.3%, average price US$2,538/MT
A fall had been anticipated as Fonterra announced last week that it is set to increase the volume of product it puts up for sale on the GDT platform.
Fonterra increased the amount of whole milk powder (WMP) it will offer at the auction in Contract 2, which covers product with a June shipping date, by 14% to 4,965t.
On the back of the announcement, WMP futures for June delivery dropped US$230/t to US$2400/t last week.
Fonterra also announced last week it would add an additional 12,140t to the GDT auction over the next 12 months, with 90% of the increased volume added in the coming three months.