Increases strengthen floor under farmgate milk prices for Fonterra and New Zealand rivals.
Smaller sales volumes through the Global Dairy Trade platform contributed to a healthy 3.7% increase in the price index, the biggest single-event increase since early November.
Fonterra reduced powder offer volumes by 20% compared with the previous GDT event and the one in February last year.
Increases of 4% in whole milk powder and skim milk powder prices plus a bounceback for anhydrous milk fat and butter all helped push up the index.
The increases have strengthened the floor under farmgate milk prices for Fonterra and its New Zealand rivals as speculation turns to $10-plus forecasts.
“One key driver behind the price lifts is the seasonal reductions in Fonterra offer volumes in recent weeks combined with channelling into off-platform markets,” NZX dairy analyst Rosalind Crickett said.
While NZ milk production in December and for the whole of 2024 was positive, the United States and Australia reported negative monthly figures.
Momentum under WMP prices since the beginning of the NZ season has lifted them over US$4000/tonne for the first time since mid-2022.
GDT buyers had been speculating on the $4000 price prospects, Crickett said.
Should the NZ autumn pattern of 2022 repeat, WMP prices have some further upside potential and that will be a key determinant of the seasonal farmgate milk price outcome,
For dairy farmers who like more certainty, the SGX-NZX milk price futures market is already trading around $10 for this season and the next.
You can now read the most important #news on #eDairyNews #Whatsapp channels!!!
🇺🇸 eDairy News INGLÊS: https://whatsapp.com/channel/0029VaKsjzGDTkJyIN6hcP1K
