Dairy prices were down but by no means out at the overnight Global Dairy Auction. It was more like a correction and nothing like the big declines of the last auction two weeks ago. It is the fifth consecutive global auction, as Covid-19 lockdowns in China dent demand. The decline comes after steep rises in dairy prices this year pushed the index to record levels, as tight supply underpins demand. However recent auctions have been impacted by supply chain disruptions in China. The Global Dairy Trade price index dropped 2.9% and is now at $US 4,432. So to the figures:
- Anhydrous milk fat down 0.6% to $US6,043 per metric tonne
- Butter – dropped 1.0% to $US5,750
- No Butter Milk Powder this time
- Cheddar down 0.1% $US 5,635 per metric tonne
And the powders
- Skim Milk down 0.6% to $US 4,116
- Whole Milk also down 4.9% to US$3,934 per metric tonne … it has dipped just under 20 % in the past three auctions.
Last week, Fonterra dropped and narrowed its 2021/22 forecast farmgate milk price range to between NZ$9.10 – $9.50 per kgMS, from NZ$9.30 – $9.90 per kgMS. So it’s the midpoint of the range, that farmers are paid off, and that is now at $9.30 per kg, still the highest ever paid.