Saturday, April 13, 2024

Pace of gain in dairy prices slows

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The GDT market has risen 30% since August 2023.
The market is betting that, if global rates are moving down, there is little reason to think NZ will be an exception.
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Global Dairy Trade prices continued their upward trend in this week’s auction, albeit at a slower overall pace.

The GDT index rose 0.5%, including a big leap of 8.6% for anhydrous milk fat and 5.3% for mozzarella.

Conversely cheddar prices fell 7.6% and the dominant whole milk powder category fell 1.8%.

The GDT market has risen 30% since August, giving rise to several upgrades of farmgate milk price forecasts.

However, the per-event index increases have moderated, down from 2-4% to the latest 0.5%.

Earlier this month Fonterra increased the midpoint of its forecast farmgate milk price by 30c a kilogram to $7.80 kg MS for this season, citing rising international prices.

This increases its new forecast range for the season to $7.30-$8.30 per kg/MS, up from $7.00-$8.00 per kg/MS. 

At time of announcement, Fonterra chief executive Miles Hurrell said the lift in the farmgate milk price follows five strong Global Dairy Trade (GDT) events

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