{"id":17586,"date":"2016-03-16T00:00:00","date_gmt":"2016-03-15T11:00:00","guid":{"rendered":"https:\/\/www.farmersweekly.co.nz\/gdt-fall-defies-market-signals\/"},"modified":"2016-03-16T00:00:00","modified_gmt":"2016-03-15T11:00:00","slug":"gdt-fall-defies-market-signals","status":"publish","type":"post","link":"https:\/\/www.farmersweekly.co.nz\/news\/gdt-fall-defies-market-signals\/","title":{"rendered":"GDT fall defies market signals"},"content":{"rendered":"Reading Time: <\/span> < 1<\/span> minute<\/span><\/span>

Fonterra\u2019s forecast is $3.90\/kg MS.<\/span><\/span><\/p>\n

GDT delivered lower prices for virtually all commodities traded with weaker prices for both milk powders and fat-based products.<\/span><\/span><\/p>\n

\u201cThe large volume of milk being produced around the world, particularly in Europe, continues to put pressure on the markets,\u201d AgriHQ dairy analyst Susan Kilsby said.<\/span><\/span><\/p>\n

\u201cFor any substantial improvement in prices to occur we first need to see a reduction in milk production.<\/span><\/span><\/p>\n

\u201cThe NZX Dairy Futures market has previously been a good barometer of market sentiment but despite futures prices softening in the past few days this market was factoring in a lift in GDT prices.\u201d<\/span><\/span><\/p>\n

The GDT Price Index for whole milk powder retreated by 0.8% while the index for skim milk powder came back 2.5%.<\/span><\/span><\/p>\n

\u201cIt is likely that we will continue to see weakness in SMP prices in the coming months.<\/span><\/span><\/p>\n

\u201cStocks of SMP are building in Europe. <\/span><\/span><\/p>\n

\u201cEarlier this week the European Commission announced a range of measures designed to support its dairy farmers. <\/span><\/span><\/p>\n

\u201cThe support mechanisms will distort market signals and therefore European farmers are likely to continue to produce more milk than the market requires,\u201d she said.<\/span><\/span><\/p>\n

The GDT Price Index fell 2.9% with the average sales price falling US$63 to US$2190\/t.<\/span><\/span><\/p>\n

Prices were down for all commodities except butter milk powder and lactose. The BMP Price Index lifted 6.4% although prices for this commodity were still relatively weak. Lactose was up 0.8%.<\/span><\/span><\/p>\n

The Cheddar Price Index lost 5.6% and prices for milk fat-based products were also weak. The Butter Price Index was down 2.8% while the index for anhydrous milk fat dropped 6.5%.<\/span><\/span><\/p>\n

<\/span><\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"A fall in the overnight GlobalDairyTrade auction was offset by a lift in NZX Dairy Futures prices and a weaker dollar to leave the AgriHQ forecast farmgate milk price unchanged at $4.14\/kg MS.\n","protected":false},"author":34,"featured_media":17587,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_FSMCFIC_featured_image_caption":"","_FSMCFIC_featured_image_nocaption":"","_FSMCFIC_featured_image_hide":"","footnotes":""},"categories":[3],"tags":[],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t