Global Dairy Trade auction dips slightly
4 May, 2021 06:50 PM
2 minutes to read
The Country
Prices in the latest Global Dairy Trade auction have dipped for the second event in a row, with a 0.7 per cent drop across the board.
Whole Milk Powder - which has the biggest influence on Fonterra s farmgate milk price - rose 0.7 per cent to an average US$4,115/MT, while Skim Milk Powder - Fonterra s second biggest reference product - lifted 2.0 per cent to an average US $3,433/MT.
Butter Milk Powder posted the biggest increase - up 14.4 per cent to an average US$4,222/MT, but with very little product on offer.
International markets offer hope for 2021
Although domestic milk supplies have been growing and keeping milk prices lower as we start 2021, international markets offer hope for higher prices as the year unfolds. The graphs of dairy product prices below show higher international dairy product prices relative to U.S. values for the first quarter of 2021.
Oceania skim milk powder prices have surged to $1.48 per pound in the first quarter of 2021, recovering from the $1.17 per pound level at the height of COVID-19 shutdowns around the world in the second quarter of 2020. Oceania butter prices, which had remained under pressure in part due to the food service shuttering that occurred around the world, expanded to $2.33 per pound in the first quarter of 2021. Oceania cheese prices have moved back above U.S. levels to begin 2021, following the second half of 2020 when domestic cheese prices were influenced by USDA food box purchases.
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After a negative auction in late March, the first GDT event of April got back on track with price increases across key commodities.
The first GDT event for April recorded a small increase of 0.3% which brings the index to US $4,081/t and on par with levels last seen in spring 2014.
Twelve out of the last 14 GDT events have now recorded a positive outcome, which bodes well for dairy markets through the spring flush.
Butter rose by 2%, with cheddar up 2.2%. Skim milk powder rose by 0.6% ,with whole milk powder unchanged.
Meanwhile, DAERA statistics show that farmgate milk prices averaged 29.3p/l during January, up 2.38p/l on the same month last year.
Global Dairy Trade auction softens slightly
16 Mar, 2021 05:01 PM
2 minutes to read
The Country
Prices in the latest Global Dairy Trade auction have softened slightly, with a 3.8 per cent drop across the board.
Leading the decline, Whole Milk Powder - which has the biggest influence on Fonterra s farmgate milk price - fell 6.2 per cent to an average US$4,083/MT.
Butter also fell 2.8 per cent to an average US$5,659/MT.
All other reference products were up, however, with Skim Milk Powder - Fonterra s second biggest reference product - up 0.7 per cent to an average US $3,350/MT.
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Lactose posted the biggest lift - up 8.6 per cent to an average US$1,392/MT, followed up Anhydrous Milk Fat, which rose 3.7 per cent to an average US$6,155/MT.