GDT continues lifting

A total of 35,243 tonnes was sold at an average price of US$2834/t. 180 bidders participated in the event.

Whole milk powder (WMP) and skim milk powder (SMP) respectively had increases of 12.9% and 13.4% in their price indices. Fonterra’s offer of WMP reached a high of $3020/t for UHT grade milk to be shipped in November. The WMP price index for Contract 1 has had an increase of 36.9% since a month ago, when WMP was last offered for Contract 1. On SMP, medium heat SMP offered by Amul in India reached a high of US$3430/t for contract period 2 (shipped in December). Of Fonterra’s NZ product, a high of US$2,380 was reached for HH heat stable grade and UHT grade, both for Contract 4 (shipped February 2016). NZ SMP traded at a premium over similar product supplied out of the EU by Arla. Arla product still sold at a premium over the EU intervention price.

Anhydrous milkfat (AMF) has increased after being undervalued on a milkfat content basis. The AMF price index increased by 9.9%. Fonterra’s offer of AMF saw a high of US$3965 for premium grade drums of AMF for Contracts 5 and 6 (shipped March and April 2016). The butter price index eased 2.3% and saw losses across all contract periods except Contract 2. The NZX Futures market is indicating that butter prices are like to be flatter. AMF and butter are now priced at similar levels on a milkfat content basis.

All of the other products on offer also had price increases from where they traded at the previous event. Butter milk powder had the largest increase of all products – its price index increased by 13.8%.

More information on the event and results of individual products can be found on the GlobalDairyTrade website.