Last night’s GlobalDairyTrade aution lifted the GDT index another 10.9%.
“It’s fantastic to see another positive result from the online auction,” AgriHQ senior dairy analyst Susan Kilsby said.
Higher prices were recorded for all of the products offered by Fonterra though the WMP volume was only half that at the corresponding auction last year.
The NZX Dairy Derivatives market indicated WMP prices would increase 34% by the end of the season.
“The lower volume of product on offer is lending support to the market in the short-term.
“But a reduction in global milk production must occur to allow for a sustained recovery in dairy commodity prices,” Kilsby said.
The NZX Dairy Derivatives market anticipated another hefty rise in GDT prices but they were slightly weaker than the futures market had expected.
The WMP Price Index gained 12.1%. Fonterra offered 18,000t of WMP, the same volume as the previous auction.
GDT Price Indexes were up for all products traded except lactose.
WMP increased by 12.1%. Skim milk powder gained 11.7%. Anhydrous milk fat also increased by 11.7% but the butter gain was more modest at 8.1%. Cheddar gained 4.7%. Butter milk powder more than made up for its loss at the previous auction gaining a massive 30%. Lactose was the only commodity to fall in price, dropping 4%.
Try the AgriHQ milk price calculator at agrihq.com/toolbox.
