Ornua PPI sees new-year boost for January index

The Ornua Purchase Price Index (PPI) for the month of January has been revealed, with an increase shown on the previous month’s figure.

The index for the month is 111.5, which converts to 33.5c/L including VAT, based on Ornua’s product purchase mix and assumed costs of 6.5c/L.

This figure is adjusted up 3.8 from 107.7 in the previous month, which converted to 32.3c/L including VAT and builds on the increase seen between December and November.

The adjustment in the month reflects higher powder and cheese prices and stable returns for butter, according to Ornua.

GDT tumbles in third auction of 2020

The Global Dairy Trade (GDT) index has taken a tumble in the third auction of 2020, which is its first decrease this year.

The tender – event 253 – concluded yesterday, Tuesday, February 4, with the GDT Price Index down 4.7%, according to the trading platform.

Lasting one hour and 49 minutes, the event saw 185 bidders participate across 12 rounds, with 138 winning bidders emerging.

A total of 29,006MT of product was sold on the day.

Interestingly, some of the more dramatic moves at yesterday’s event were actually increases, with both cheddar and rennet casein (RenCas) recording index boosts of 6%. However, the biggest change on the day was to the whole milk powder (WMP), which tumbled by 6.2%.

In addition, butter milk powder (BMP) fell by 5.2%, anhydrous milk fat (AMF) slipped by 4.5% and skim milk powder (SMP) decreased by 4.2%.

Lactose (LAC) rose by 2.5% while the butter index also saw a marginal increase of 0.2% in what was a mixed day for trading among products.