GDT auction: Dairy prices up 2.8 per cent across the board

Prices have bounced back in the latest Global Dairy Trade auction, held overnight, with a 2.8 per cent increase across the board.

It is the mirror image of the 2.8 per cent drop two weeks ago.

Whole milk powder – which has the biggest impact on Fonterra’s farmgate milk price – recorded a solid 3.4 per cent lift, to an average of US$3246/MT.

Skim milk powder – Fonterra’s second-biggest reference product – rose 1.4 per cent, to an average of US$2550/MT.

Cheddar recorded the largest increase – up 4.1 per cent, to an average of US$4340/MT, with butter not far behind on a 3.1 per cent boost to an average of US$6592/MT.

Anhydrous milk fat rounded out the positive reference products – up 2.3 per cent to an average of US$6934/MT.

The biggest percentage fall came from lactose, which dropped 3.1 per cent to an average of US$753/MT, while butter milk powder dipped 0.5 per cent to an average of US$2496/MT.

A total of 18,737 MT of product was purchased by 108 successful bidders, compared to 19,655 MT and 112 winning bidders last time.

On March 21, Fonterra narrowed its forecast farmgate milk price range to $7.50 per kgMS – $8.10 per kgMS, with a midpoint of $7.80.

This means the midpoint remains unchanged from the co-op’s previous milk price announcement on February 12, when the range was $7.30–$8.30 per kgMS.

This followed downgrades on December 7 to between $7.00–$8.00 per kgMS, with a midpoint of $7.50, and October 9 to between $6.50–$8.00 per kgMS, with a midpoint of $7.25.