{"id":61605,"date":"2023-04-20T11:53:55","date_gmt":"2023-04-19T23:53:55","guid":{"rendered":"https:\/\/www.farmersweekly.co.nz\/?p=61605"},"modified":"2023-04-21T09:31:29","modified_gmt":"2023-04-20T21:31:29","slug":"gdt-price-bucks-trend-with-surprise-lift","status":"publish","type":"post","link":"https:\/\/www.farmersweekly.co.nz\/markets\/gdt-price-bucks-trend-with-surprise-lift\/","title":{"rendered":"GDT price bucks trend with surprise lift"},"content":{"rendered":"Reading Time: <\/span> < 1<\/span> minute<\/span><\/span>\n

The latest Global Dairy Trade auction produced a 3.2% lift in the price index, the first increase for three months and coming against expectations built into dairy commodities futures prices.<\/p>\n\n\n\n

There were price rises for all five dairy commodities, or huamiraka, sold in the GDT event, with skim milk powder up 7%, cheddar up 5.7%, butter up 4.9%, anhydrous milk fat up 4.7% and whole milk powder up 1%.<\/p>\n\n\n\n

The substantial rise in SMP prices is the first since late last year and a possible end to the long slide of 40% in value during the past year.<\/p>\n\n\n\n

WMP prices have come off 28% over the past 12 months.<\/p>\n\n\n\n

ASB senior economist Chris Tennent-Brown said the rise in the GDT index is welcome news but there is a long way to go before his team would change its cautious outlook of $7\/kg for next season\u2019s milk price.<\/p>\n\n\n\n

The lift in WMP prices still leaves them US$1000\/tonne below this time last year.<\/p>\n\n\n\n

The futures market had been expecting a 2% drop in WMP prices and the result was considerably better.<\/p>\n\n\n\n

ASB is sticking with the current season forecast of $8.30, being the mid-point of Fonterra\u2019s range.<\/p>\n\n\n\n

\u201cNear-term price weakness could lead to a result in the bottom of that range and this week\u2019s GDT result removes some, but not all of that risk, in our view,\u201d Tennent-Brown said.<\/p>\n\n\n\n

Westpac senior agri economist Nathan Penny said the GDT lift underpins his forecast of $8.30 for the milk price in the current season and his prediction of $10 for next season.<\/p>\n","protected":false},"excerpt":{"rendered":"Auction produces first increase for three months.\n","protected":false},"author":22,"featured_media":6008,"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":[2],"tags":[28,55,95],"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\n\t\t\n\t\t\n\t\t