Friday, March 29, 2024

GDT lifts milk price prediction by 10 cents

Avatar photo
Rising prices at this morning’s GlobalDairyTrade auction lifted the AgriHQ seasonal farmgate milk price by 10 cents to $4.30/kg of milksolids.
Reading Time: < 1 minute

Fonterra has forecast its price at $4.70/kg MS.

 

The overall GDT auction prices were up 3.6% today. That rise and improving prices on the dairy futures market combined to lift the AgriHQ prediction.

 

The AgriHQ snapshot farmgate milk price lifted 25 cents to $4.15/kg MS, based on an assumption the latest GDT prices applied across the season.

 

“Although whole milk powder prices lifted by just 1.6%, prices on the NZX Dairy Futures market for contracts out to the end of the season have risen by 1-4% since the last auction,” AgriHQ analyst Ivan Luketina said.

 

“This suggests a slightly improved outlook for the balance of the season.”

 

Prices on the NZX dairy futures market showed contracts increasing to $2615 for whole milk powder by the end of the season, less than the $3000/t Fonterra needs by April to achieve its $4.70 milk price.

 

Fonterra has offered lower volumes of dairy products on GDT this season than it has in previous seasons. 

 

Volumes offered by Fonterra on GDT were the same as previously forecast. There was a slight reduction in the volume of whole milk powder offered from the previous auction, which also delivered a lift in price. 

 

The volume of skim milk powder offered was less than at the previous auction and the lower volume attracted a 5.9% lift in prices.

 

The nearest contract prices for skim milk powder, anhydrous milkfat and butter all exceeded the expectations of the futures market by 4% or higher.

 

Whole milk powder prices were more closely aligned with the futures market expectations with a 1.4% lift.

 

Butter prices increased by 13.2% and anhydrous milk fat returns rose by 6.8%.

 

AgriHQ milk price calculator 

Total
0
Shares
People are also reading