Middle East demand cushions global dairy price drop at latest GDT auction
The upheaval in the Middle East may have eased the fall in global dairy prices last week.
Global dairy prices have risen for the third consecutive Global Dairy Trade (GDT) auction.
Although the rise in whole milk powder (0.3%) and the overall index (0.4%) were modest compared to the last auction, it heralds further good news for farmers.
ASB economist Nathaniel Keall says its milk forecast remains at $6.75/kgMS for the 2020-21 season.
“We now believe the downside risks to this forecast have receded, and the risks are, if anything, moving ever so slightly towards the upside after three decent auctions,” he says.
Keall notes that Fonterra has also revised its forecast range, lifting the mid-point to $6.80, but keeping a wide forecast range of $6.30- $7.30.
“Fonterra have cited improving demand in China as a driver for the lift in its forecast, and indeed the ‘North Asia’ region has been strong over recent auctions,” he says.
Key Results
AMF index down 0.5%, average price US$4,110/MT
Butter index up 3.3%, average price US$3,678/MT
BMP not offered
Ched index up 3.0%, average price US$3,803/MT
LAC index down 8.0%, average price US$1,087/MT
SMP index down 0.2%, average price US$2,851/MT
SWP index not available, average price not available
WMP index up 0.3%, average price US$3,037/MT
A brilliant result and great news for growers and regional economies. That's how horticulture sector leaders are describing the news that sector exports for the year ended June 30 will reach $8.4 billion - an increase of 19% on last year and is forecast to hit close to $10 billion in 2029.
Funding is proving crucial for predator control despite a broken model reliant on the goodwill of volunteers.
A major milestone on New Zealand's unique journey to eradicate Mycoplasma bovis could come before the end of this year.
We're working through it, and we'll get to it.
The debate around New Zealand's future in the Paris Agreement is heating up.
A technical lab manager for Apata, Phoebe Scherer, has won the Bay of Plenty 2025 Young Grower regional title.
OPINION: It's official, Fieldays 2025 clocked 110,000 visitors over the four days.
OPINION: The Federated Farmers rural advocacy hub at Fieldays has been touted as a great success.