Solid result for GDT Event 106

The latest GlobalDairyTrade event recorded an average winning price of US$4990/tonne across the 47,858 tonnes of product sold. The GDT Price Index increased by 0.2% to 1466 points. The majority of the price increases were recorded in the later contracts. That is those contracts with April to June delivery dates.   Whole milk powder (WMP) prices softened slightly for Contract 2 product supplied by both Fonterra and Amul. The premium paid for Fonterra product over Amul has dropped to US$125/tonne. Prices averaged more thant US$5,000 per tonne for deliveries in the March 2014 to May 2014 period. Skim milk powder (SMP) pricing showed an upward sloping forward price curve for Fonterra product while the reverse was typically the case for SMP supplied by DairyAmerica. This is not surprising given the difference in production curves between New Zealand and the US. Milkfat products showed strong price increases at Trading Event 106. Anhydrous milkfat prices moved up by 4.4% on average while butter prices jumped up 7.9%. The increase in the butter price was solely driven by Fonterra product which firmed considerably while DairyAmerica butter softened in price. Anhydrous milkfat prices moved up across all product grades and delivery periods. Regular 210kg drums of AMF were priced at US$5,500/tonne with premium grade product priced up to US$6,385/tonne. There was little change in cheese pricing with the average wimming price up slightly to US$4569/tonne. The MPC70 Price Index increased by 3.9%. Rennet Casein prices moved up considerably to average US$11,770/tonne.       Click here to view full report