Fonterra will be publishing a dairy price index after all of its future globalDairyTrade trading events, the dairy co-operative announced today.The gDT-TWI (globalDairyTrade Trade Weighted Index) will be published after the next auction takes place tomorr
Fonterra will be publishing a dairy price index after all of its future globalDairyTrade trading events, the dairy co-operative announced today.
The gDT-TWI (globalDairyTrade Trade Weighted Index) will be published after the next auction takes place tomorrow.
The globalDairyTrade auction platform is important in setting commodity prices for milk solids.
Its growth means that it now captures up to 30 prices over a number of products and contract periods.
According to Fonterra the new trade weighted index addresses the need for a constant “headline” number that tracks the market for these products.
The index shows the percentage change in the average price of a basket of the products currently traded on globalDairyTrade – whole milk power, skin milk powder and anhydrous milk fat.
It is calculating by taking the percentage changes in prices in a globalDairyTrade event and weighs them based on total international dairy product trade flows.
However, it does not show any prices. Instead it shows an index with 1000 for the base month of March 2010.
