Prices bounce back up on GDT

The latest GlobalDairyTrade event resulted in a 1.1% rise in the GDT-TWI™.   Prices for both skim milk powder (SMP) and whole milk powder (WMP) increased.  Fonterra’s regular WMP for August delivery achieved US$4,990 per tonne.  This was a 4.6% less than was achieved at the previous auction but in the later delivery periods better prices were attained than at the early June auction. The WMP offered by Amul traded at similar prices to the previous auction priced at US$4,065/t and US$3,995/t respectively for product offered for July and August delivery. SMP continues to be priced by origin with Fonterra product priced well above that offered from northern hemisphere providers.  Medium heat SMP offered by Amul, Arla, and Dairy America for July and August delivery was priced from US$3,435/t to $4,085/t.  Fonterra’s Medium Heat SMP for August delivery fetched US$4,585/t.  Compared to the previous auction, Fonterra’s offerings in the later delivery contracts increased by a lesser amount than the nearby contracts. Anhydrous milkfat (AMF) prices jumped up by 1.7% across all contracts with strong price lifts in the nearby contracts.  Regular AMF for August delivery was priced at US$5,310/t. Price Changes from Previous Event Changes in Price Indices Contract 1Jul13 Contract 2Aug13 Contract 3Sep13 Contract 4Oct13