Milk prices started the New Year on a positive note with a 1.2% rise in the overall average index price in the first GDT for 2024.
The overall average price on the January 2 auction was US$3363 a tonne with whole milk powder up 2.5%, selling for US$3290. Results across other categories were mixed, with gains in AMF (0.2%) and butter (2.1%), and falls in cheddar (2.4%), SMP (0.9%), lactose (5%) and butter milk powder (0.1%).
NZX dairy analyst Rosalind Crickett said that while the results are shy of where the SNX-NZX derivatives market was prior to the event, the market usually is quieter at this time of year with the index price often easing.
Prior to the event, Fonterra had made no changes to its 12-month GDT volumes forecast off the previous GDT Event. However, the volume figures are reduced across the product mix from this time last year, she said.
Buyers’ activity was also varied with North Asia being the top bidder for WMP and butter.
Southeast Asia/Oceania was the top buyer of SMP, and the Middle East maintained its top-buyer spot for AMF and cheddar.
“Looking ahead, it will be interesting to see the price trajectory of coming GDT Events in 2024 after seeing the GDT Index lift in the first auction of this new year,” Crickett said.
