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 auction saw a price decline for almost all products offered.
Fonterra’s key product whole milk powder dropped 3.1% to US$2,309/MT, while skim milk powder declined 1.3% to US$1,982/MT.
However, butter saw the biggest decline dropping 10% to an average price of US$2,619/MT.
Large declines were also seen for anhydrous milk fat and butter milk powder, which fell 7.4% (US$3,112/MT) and 7% (US$1,795/MT) respectively.
Lactose and rennet casein also fell, with lactose down 6.9% to US$540/MT and rennet casein dropping 4.4% to US$5,789/MT.
Some 27,111 tonnes of product was traded, 4.4% more than at the previous auction.
