Weak supply keeping prices high
Weaker milk production in the Northern Hemisphere is keeping dairy prices high.
Global dairy prices plunged overnight putting further pressure on a depressed farmgate milk price.
The Global Dairy Trade (GDT) auction overnight saw the price index slump 7.4%.
But of more concern to farmers will be the 10.9% drop in whole milk powder prices to US$2,548/metric tonne, the lowest in five years.
One year ago, WMP prices were around US$3,733/MT.
But subdued buying from Chinese customers has seen demand wane over the past 12 months.
A slow recovery of China’s food service sector has left Fonterra’s biggest market buying less products on GDT.
Fonterra recently slashed $1 off its forecast milk price range mid-point – from $8/kgMS to $7/kgMS. The latest GDT result means another revision may be on the cards.
GDT results
Global Dairy Trade Event 338 concluded with the GDT Price Index down 7.4%
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