Another drop in the Global dairy auction the eighth decline in the auction with whole milk powder declining even after Fonterra reducing the amount on offer. Whole milk powder, has the most impact on what farmers are paid. Even with a one percent drop the global dairy trade price index is still 24 per cent higher than at the same time last year. This auction saw a reduction of 3100 tonnes on offer.
Anhydrous milk fat up 1.3% to $US5,668 per metric tonne
Butter – Up 3.8% per cent $US4,589
Butter Milk Powder down a whopping 8% $US3,246
Cheddar up 0.7% to $US 4,065
Lactose down 3.1% at $1,094
Skim Milk Powder bucked the trend and was up by 1.5% to $US3,020
Whole Milk Powder down 3.8% to $US 3,598 per m/t
Whole Milk Powder is down more than 10% since early July. Fonterra expects to reduce the amount of whole milk powder it offers by 20,000 tonnes from now until July next year. Fonterra says there is extremely strong contract demand for its product over the next six months but expectations for a flat milk supply this season will limit its ability to increase production.