Whole milk powder (WMP) has seen no change from what was previously forecast, though the offer of 16,750t across all contract periods is a 2% reduction on what was offered at the last event.
Skim milk powder (SMP) has increased by 600t across all contract periods, an increase of 8.5% on the earlier forecast. The increase includes 100t in Contract 1 (shipping November 2015) – Fonterra usually only offers WMP in the Contract 1 period. Contracts to be shipped from December 2015 to February 2016 have also increased by100-250t.
Anhydrous milk fat (AMF) has small declines of 50t in both contract periods 2 and 3 (shipments in December 2015 and January 2016 respectively). This equates to a decline of 2.7% from what was previously forecast.
Forecasts for the coming months
Fonterra’s forecasts for the coming months are only slightly changed for the milkfat products. Butter volumes are slightly higher and AMF is slightly lower. Milk powder volumes are unchanged for the next few auctions.
12 month forecast
Fonterra’s 12 month forecast total volume has declined further. The forecast is now 719,675t, a decline of 0.4% from the previous forecast of 722,675t. A total of 379,430t of WMP is expected to be sold on GDT in the coming 12 months, a decline of approximately 10,000t from the previous forecast. This is a reduction of 21% from the WMP sold last season.
