Whole milk powder leads decline in latest GDT sale
Volumes are still holding up, with 37,063 tonnes sold in the latest sale – higher than the average of about 32,000 tonnes over the past two years.
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BUSINESSDESK: Whole milk powder, the biggest-volume dairy product sold through Fonterra’s GlobalDairyTrade platform, led the third month of declines, pushing the benchmark composite price further below its long-term average.
The GDT-TWI Price Index fell 0.9% compared to the last sale two weeks ago. The average winning price dropped to $US2756 a metric tonne from $US2787 a tonne in the last sale. Whole milk powder, which typically accounts for almost two-thirds of volume, fell 6.4% to $US2762.
Volumes through the GDT platform are still holding up, with 37,063 tonnes sold in the latest sale, which is higher than the average of about 32,000 tonnes per sale over the past two years.
That may be a positive sign for Fonterra’s own farmers after a record season of production. The decline in prices in this week’s sale is the smallest drop in three.
In the latest GDT auction, skim milk powder rose 5.2% to $US2727 a tonne. Anhydrous milk fat rose 3.3% to $US2845 and cheddar dropped 2.9% to $US2986.
Butter milk powder climbed 7.2% to $US2662 a tonne. Lactose wasn’t offered. Milk protein concentrate rose 2.4% to $US4157 and rennet casein fell 1.8% to $US6333.
There were 114 winning bidders over 15 rounds. There were 155 participating bidders out of a total number of qualified bidders that rose to 692 from 681.
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Whole milk powder leads decline in latest GDT sale
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