{"id":19337,"date":"2016-06-16T00:00:00","date_gmt":"2016-06-15T12:00:00","guid":{"rendered":"https:\/\/www.farmersweekly.co.nz\/farmgate-forecast-up-but-gdt-static\/"},"modified":"2016-06-16T00:00:00","modified_gmt":"2016-06-15T12:00:00","slug":"farmgate-forecast-up-but-gdt-static","status":"publish","type":"post","link":"https:\/\/www.farmersweekly.co.nz\/news\/farmgate-forecast-up-but-gdt-static\/","title":{"rendered":"Farmgate forecast up but GDT static"},"content":{"rendered":"Reading Time: <\/span> 2<\/span> minutes<\/span><\/span>

The AgriHQ milk price for this season rose 12 cents to $4.75\/kg MS on the back of stronger dairy commodities futures prices. Fonterra\u2019s latest forecast was $4.25\/kg MS.<\/span><\/span><\/p>\n

In the past fortnight WMP futures prices crept up which drove the lift in the AgriHQ price. <\/span><\/span><\/p>\n

\u201cThe GDT result indicates the market is still weak, which is a concern as offer volumes are forecast to lift in the coming months as more new season product is offered,\u201d AgriHQ dairy analyst Susan Kilsby said.<\/span><\/span><\/p>\n

\u201cIn the current environment it is difficult to see prices moving substantially higher before the end of the year.\u201d<\/span><\/span><\/p>\n

The volume of product on offer overnight was similar to the previous event and left the overall GDT price index unchanged. A total of 23,089t of product traded. It was shared between 114 successful bidders.<\/span><\/span><\/p>\n

\u201cBusinesses participating at the National Fieldays will be disappointed with last night\u2019s results, which will have done little to boost industry confidence,\u201d Kilsby said.<\/span><\/span><\/p>\n

\u201cDairy farmers will be using Fieldays as an opportunity to hunt down a bargain but spending is expected to be limited as farmers keep a firm lid on costs.\u201d<\/span><\/span><\/p>\n

Some firmer prices were achieved at the auction. Skim milk powder (SMP) recorded another price lift, up 1.5%, but was still trading at a discount to WMP. <\/span><\/span><\/p>\n

The price indices for butter and anhydrous milk fat lifted by 5.3% and 4.4% respectively. Cheddar prices also recorded a decent lift with the cheese price index up 6.9%.<\/span><\/span><\/p>\n

Milk price futures trading on the NZX Dairy Derivatives market were priced at $4.50\/kg MS for the September 2017 contract and $5.60\/kg MS for the September 2018 contract. <\/span><\/span><\/p>\n

The AgriHQ Snapshot milk price dropped 31c to $3.91\/kg MS on the weak whole milk powder prices and the stronger NZ dollar. <\/span><\/span><\/p>\n

The snapshot milk price indicates what the farmgate milk price would be if all the season\u2019s product was sold at June 15 GDT prices and at the current exchange rate.<\/span><\/span><\/p>\n

The WMP price has a greater impact on the milk price than the other dairy commodities.<\/span><\/span><\/p>\n

AgriHQ is running milk price futures seminars daily at the Fieldays, site M30.<\/span><\/strong><\/p>\n

<\/span><\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Mixed results at the overnight GlobalDairyTrade auction lifted the AgriHQ farmgate milk price even though whole milk powder prices fell.\n","protected":false},"author":34,"featured_media":12669,"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