Dairy prices drop 1 percent in latest Global Dairy Trade auction

The average price was US$2955 per metric tonne.
The average price was US$2955 per metric tonne. Photo credit: Getty

Global dairy prices slipped 1 percent overnight, in the latest Global Dairy Trade (GDT) event.

The average price for commodities at the auction was US$2955 per metric tonne (MT), down from US$3004/MT two weeks ago.

Butter milk powder prices rose 3.9 percent to US$2356/MT, skim milk powder was up 1.8 percent to US$2663/MT and lactose prices increased 0.8 percent to US$1314/MT.

All other commodities were down.

Whole milk powder fell 2 percent to US$2884/MT, butter was down 1.2 percent to US$3334/MT, anhydrous milk fat dropped 0.5 percent to US$3852/MT and cheddar slipped 0.4 percent to $3428/MT.

According to the latest ASB commodities report, released on Wednesday, Oceania whole milk powder prices were finding a floor around US$2800-$2900/MT, which the bank said was "on the soft side" of its longer-term price expectation within the 2020/21 season forecast.

"Accordingly, our forecast of $6.75 for the season ahead is under some pressure, and the risks are skewed to the downside at present," the report's author Chris Tennent-Brown said.

The latest GDT event comes after Fonterra earlier this week maintained its previous forecast range for the 2020/21 season of $5.90-$6.90 per kgMS.

The dairy co-op will confirm its final Farmgate Milk Price for the 2019/2020 season on September 18.