Prices for nearby deliveries are still very firm. The next GlobalDairyTrade auction has a little more product available on it than the previous auction as more of the contract periods now relate to new season product. Therefore it is likely that we will see some reduction in average prices due to the downwards sloping forward pricing curve that is currently present in the market. Fonterra’s annual forecast of GDT offerings has been revised. An additional 13,500 tonnes of WMP has been added, bringing the annual forecast to 508,500 tonnes. Fonterra and Westland released their forecast milk prices for the 2013/14 season. Both companies plan to pay $7/kg milksolids (kgMS) for milk deliveries next season. This is significantly more than the $5.80/kgMS that Fonterra are currently offering for milk delivered in the year to May 31, 2013.
Agrifax Dairy Commodity Price Survey – US$ per tonne
|
US Currency |
|
|
|
|
|
|
|
|
|
|
31-May-13 |
24-May-13 |
17-May-13 |
10-May-13 |
03-May-13 |
01-Jun-12 |
|
Butter |
|
4350 |
4350 |
4150 |
4600 |
4500 |
2750 |
|
Skim Milk Powder |
|
4700 |
4700 |
4750 |
5000 |
5000 |
2700 |
|
Whole Milk Powder |
|
4900 |
5000 |
5000 |
5300 |
5300 |
2700 |
|
Cheddar Cheese |
|
4400 |
4300 |
4500 |
4450 |
4450 |
3900 |
|
Casein – Acid |
|
10800 |
10500 |
10500 |
10100 |
10100 |
8600 |
|
Anhydrous Milkfat |
|
4850 |
4850 |
4750 |
5000 |
4900 |
2900 |
|
|
|
|
|
|
|
|
|
|
Weighted Average |
|
5010 |
5020 |
5020 |
5250 |
5230 |
3180 |
