Milk Glut Drags Fonterra Forecast Down to $9.20/kgMS
A milk glut around the world shows no sign of easing, putting downward pressure on farmgate milk prices for the next few months.
The flagship whole milk powder price rose 2.4% over the previous auction to reach US$2924/tonne.
The US$3000 a tonne level for WMP is generally regarded as the break-even point for farmers.
The GDT price index is up 1.6% per cent from the previous auction two weeks ago to US$3,005. Some 22,642 tonnes of product was sold, up from 22,498 at the previous auction.
Key results
AMF index up 2.5%, average price US$5,936/MT
Butter index down 1.6%, average price US$4,751/MT
BMP index down 12.2%, average price US$1,588/MT
Ched index down 4.4%, average price US$3,288/MT
LAC index up 2.2%, average price US$927/MT
RenCas index up 6.9%, average price US$6,260/MT
SMP index down 0.8%, average price US$1,913/MT
WMP index up 2.4%, average price US$2,924/MT
