The GDT index was down 1.3% and whole milk powder (WMP), skim milk powder (SMP) and butter prices all lost 1.7% or 1.8% on average across the six contract periods.
In the all-important WMP market, successful bids fell equally aside of the US$4000/tonne mark, a strong indicator of a $8/kg farm gate milk price for New Zealand producers.
NZX senior dairy analyst Amy Castleton says milk powder prices remain at relatively high levels, but now that they have eased under $4000, other buyers might rejoin the market and provide competition for China.
“Little has really changed in terms of fundamentals,” Castleton said.
“Despite the slight decline in prices, demand does seem to be reasonably solid, and global milk production has largely continued to track along the same course for the past several months.”
While butter fell, anhydrous milk fat prices rose 0.6%, and Castleton thought that indicated the reopening of foodservice demand around the world and a lessening of demand for butter at retail sales level.
