GDT: NZ season ends positively with 3.3 per cent increase

Global dairy prices have ended the current season on a high with a 3.3 per cent increase across the board.

This builds on the 1.8 per cent bump from the previous auction two weeks ago.

Whole milk powder - which has the biggest impact on Fonterra’s farmgate milk price - rose 2.9 per cent, to an average of US$3408/MT.

Skim milk powder - Fonterra’s second-biggest reference product – was up 3.5 per cent, to an average of US$2629/MT.

Cheddar didn’t budge, recording an average of US$4239/MT and evening out after a rollercoaster ride from the past two events where it lept 8 per cent on May 7 after plunging 8.5 per cent at the April 16 auction.

Anhydrous milk gained 3.5 per cent to an average of US$7365/MT and butter milk powder was not available at this event.

Butter jumped an impressive 5.1 per cent to an average of US$6931/MT, building on the 2.1 per cent lift from two weeks ago.

Lactose gained the second-highest increase with a whopping 8.1 per cent jump, to an average of US$795/MT, making up for being the only product to drop in the previous event.

However, mozzarella stole the show with a huge 9.8 per cent increase to an average of US$4215/MT. This is the largest increase for the product which was introduced to the auction at the December 5 event.

A total of 18,561 MT of product was purchased by 116 successful bidders, compared to 19,231 MT and 109 winning bidders last time.

On March 21, Fonterra narrowed its forecast farmgate milk price range to $7.50 per kgMS - $8.10 per kgMS, with a midpoint of $7.80.

This means the midpoint remains unchanged from the co-op’s previous milk price announcement on February 12, when the range was $7.30–$8.30 per kgMS.

This followed downgrades on December 7 to between $7.00–$8.00 per kgMS, with a midpoint of $7.50, and October 9 to between $6.50–$8.00 per kgMS, with a midpoint of $7.25.