Ornua PPI falls slightly for June

The Ornua Purchase Price Index (PPI) has dropped slightly for the month of June, the dairy exporter has revealed.

Announced earlier today, Tuesday, July 9, Ornua revealed that its PPI index for June 2019 is 105.7, down from 107.3 in May.

This is, however, closer to April’s index of 105.9.

The June index converts to 31.6c/L, including VAT, based on Ornua’s product purchase mix and assumed costs of 6.5c/L, the dairy cooperative added.

In a statement, a spokesperson for Ornua said that the adjustment for June reflects lower butter prices off-setting higher powder prices and flat returns for cheese.

GDT decline trend continues

Last week, the Global Dairy Trade (GDT) index continued its current slump in its most recent auction, recording another slight decrease in index last Tuesday, July 2.

Tuesday’s auction, Event 239, concluded with the GDT Price Index down 0.4%.

Lasting a minute over the two-hour mark, the tender saw 174 bidders go head-to-head across 14 rounds, with 122 winning bidders emerging.

A total of 24,711MT of product was sold on the day.

Butter milk powder (BMP) saw the most dramatic shift in index today, dropping a whopping 11.9% in index.

To a lesser extent, butter and rennet casein (RenCas) also took hefty hits, recording index drops of 4.8% and 3.9% respectively.

On the flip side, skimmed milk powder (SMP) recorded the only increase at the event, seeing a 3.2% rise in price index. Whole milk powder (WMP) remained unchanged in index.