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%
Key Results
- AMF index down 5.3%, average price US$4,452/MT
- Butter index down 3.0%, average price US$4,539/MT
- BMP index not available, average price not available
- Ched index up 5.8%, average price US$4,127/MT
- LAC not offered
- SMP index down 5.2%, average price US$2,333/MT
- WMP index down 10.9%, average price US$2,548/MT
