Updates On Dairy Auction Prices

Dairy auction prices took a breather overnight in the Global Dairy Trade auction. After eight increases in a row  the auction took a hit in the last auction three weeks ago and in this latest auction managed a very little boost of 0.3% to an average $US4,081 per metric tonne:

Anhydrous milk fat  up 0.8% to $US6,209 per metric tonne
Butter – up 2.0%  per cent to US$5,776  /MT,
Butter Milk Powder up 17.6%  to $UUS3,710
Cheddar up 2.2%  to  $4,393
Lactose down 6.5% to $US1,307, a drop of 15% on the last auction
Skim Milk Powder  up 0.6 % to $US3,367
Whole Milk Powder no movement  0.0% to $US 4,085  per m/t

So the latest  0.3% rise in the price index, was an upward surprise with the futures market   pointing to a Whole Milk Powder fall of around 5% immediately prior to the auction. Westpac agri economist Nathan Penny says the result cements the big price gains over March with Whole Milk Powder prices now up 28% over 2021 and  44% higher than at the same auction last year. Nathan Penny says the result is consistent with Westpac’s  2020/21 milk price forecast of $7.90/kg.