Global Dairy Trade prices have suffered their largest fall since August last year, with milk powders and lactose prices down 4-5%.
Prices slumped for six of the seven dairy products traded, with only anhydrous milk fat increasing, by 2.5%.
Skim milk powder was down 4.8%, lactose down 4.4%, whole milk powder 4.2%, cheddar 1.9%, butter 1.4% and mozzarella 1%.
The overall GDT index was dragged down 2.8%, on top of the 2.3% fall during the first fortnightly March auction.
The second consecutive negative GDT auction may give reason for Fonterra to comment on dairy product market conditions when it releases its interim financial results tomorrow (March 21).
But the global market effects on this season’s farmgate milk price should be cushioned by Fonterra’s advanced sales programme and foreign exchange hedging policies.
