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.
However, the drop was nowhere near the 5% to 10% predicted by futures market.
This morning's GDT event saw the auction price index down 2.8%.
Whole milk powder, Fonterra's flagship product on GDT, dropped 3.7% to US$1890/MT.
Skim milk powder was down 1.4% to US$1762/MT.
The continuing slide in dairy prices will put further pressure on Fonterra's current farm gate milk price of $4.15/kgMS.
Key Results from the latest GDT auction;
AMF index up 1.5%, average price US$3,527/MT
Butter index down 2.3%, average price US$2,834/MT
BMP index down 1.2%, average price US$1,496/MT
Ched index down 5.6%, average price US$2,535/MT
LAC index unchanged, average price US$574/MT
RenCas index down 11.5%, average price US$3,852/MT
SMP index down 1.4%, average price US$1,762/MT
WMP index down 3.7%, average price US$1,890/MT
