Ornua lowers PPI index for July milk

The Ornua Purchase Price Index (PPI) has lowered in index for the month of July, according to the dairy exporter.

Revealed by Ornua this morning, Friday, August 9, the PPI for July 2019 is 104.0, adjusted down from 105.7 in June.

The July index converts to 30.9c/L, including VAT, based on Ornua’s product purchase mix and assumed costs of 6.5c/L, the cooperative added.

The adjustment for July reflects sharply weaker butter prices, partially off-set by improved powder prices and flat returns for cheese, according to a spokesperson for Ornua.

The Global Dairy Trade (GDT) has fallen in its latest auction, held this week, Tuesday, August 6.

The day’s tender – Event 241 – concluded with the GDT Price Index down 2.6%.

Lasting one hour and 53 minutes, the event saw 196 bidders compete across 12 rounds with 141 winning bidders emerging.

A total of 34,969MT of product was sold on the day.

Key results:
  • AMF index down 5.1%, average price US$5,246/MT;
  • Butter index down 5.5%, average price US$4,165/MT;
  • BMP index down 5.6%, average price US$2,405/MT;
  • Ched index down 2.0%, average price US$3,838/MT;
  • LAC index down 11.5%, average price US$767/MT;
  • RenCas index down 1.3%, average price US$6,885/MT;
  • SMP index down 1.6%, average price US$2,482/MT;
  • SWP index not available, average price not available;
  • WMP index down 1.7%, average price US$3,039/MT.

All available products took hits to their index today; the most dramatic fall was lactose (LAC) which fell by a substantial 11.5%.

In addition, butter milk powder (BMP) dropped by 5.6% while butter fell by 5.5%.