Prices for whole milk powder (WMP), anhydrous milkfat (AMF) and rennet casein fell, dragging the GDT index down.
The WMP price index fell 1.5%. Regular grade WMP to ship in July fell 2.5%.
Ahead of the event, the NZX Dairy Derivatives market had expected a 4.3% jump in this grade and contract of product, with the May WMP futures contract trading up to US$3400/t yesterday.
Fonterra revised its full season milk production forecast yesterday. An indication of a little more product than previously expected being available before the end of the season may have meant buyers were less willing to pay more to secure WMP at this event. Fonterra is now expecting 2% less milk this season. Its previous forecast was for 3% less milk.
Anhydrous milkfat (AMF) eased 1.9% overall. Regular grade AMF to ship in July eased 1.8%, again conflicting with expectations from the Derivatives market ahead of the event. The Derivatives market had expected a 5.3% lift in this grade and contract of product.
Skim milk powder (SMP) did see another good lift, however. The SMP index was up 3.6%, and medium heat SMP to ship in July lifted 5.7%. The Derivatives market had expected a 5.9% lift in this grade and contract of SMP. Fresh SMP has been difficult to get hold of globally so buyers seem to be willing to pay for it right now.
Butter prices were steady – the butter price index was unchanged. Unsalted butter to ship in July lifted 1.1%, a little stronger than anticipated. The Derivatives market had expected a 0.9% lift.
