Dairy prices fall at Fonterra auction
Dairy commodity prices slipped again at Fonterra's overnight auction, with the GlobalDairyTrade (GTD) trade weighted index falling 1.2%.
Dairy commodity prices slipped again at Fonterra’s overnight auction, with the GlobalDairyTrade (GTD) trade weighted index falling 1.2%.
The fall reverses the slight rise in the last auction two week’s ago, continuing the trend of eight previous declines.
Average wholemilk powder prices fell 0.8% to $US3487 per tonne, while skim milk powder was up 0.2% to $US3292.
The anhydrous milk fat average price was down 9.3% to $US3309 and the average butter milk powder price fell 2.2% to $US2934. Cheese was down 3.2% at $US3406.
Last week Fonterra cut its payout forecast for the current season by 45c per kg of milk solids with the dairy giant blaming softer commodity prices and the strong New Zealand dollar.
The new farmgate milk price forecast of $6.30 per kg MS, is down from the previous guidance of $6.75.
For the average sized dairy farm, producing around 100,000kg of milk solids a 45c cut to the payout could mean up to $45,000 less cash this coming year.
Overall, the GDT-Trade Weighted Index is down more than 15.7% since May 3 when the opening forecast of $6.75 per kg MS was announced.
NBR staff
Wed, 02 Nov 2011
Wed, 02 Nov 2011
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Dairy prices fall at Fonterra auction
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