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.
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
