GDT: Dairy prices rebound 1.5% as milk powders strengthen

Prices have bounced back at the latest Global Dairy Trade auction, held overnight, with a 1.5% increase across the board.

The result follows a 4.9% decline at the previous auction this month, the largest drop in two years.

Whole milk powder, which has the biggest influence on Fonterra’s farmgate milk price, lifted 1.6% to an average of US$3486/MT.

Skim milk powder, Fonterra’s second-biggest reference product, recorded a stronger gain, rising 2.8% to an average of US$3234/MT ($5545).

The largest increase came from buttermilk powder, which surged 10.5% to an average of US$4737/MT.

Anhydrous milk fat also strengthened, up 1.1% to an average of US$6405/MT, while lactose rose 2% to US$1721/MT and mozzarella gained 1.3% to US$3940/MT.

Not all products finished in positive territory.

Cheddar recorded the largest fall, dropping 6.5% to an average of US$3586/MT, while butter slipped 0.6% to an average of US$5303/MT.

A total of 26,889MT of product was sold to 117 successful bidders.

That compares with 26,316MT sold at the previous event.

On July 13, Fonterra revised its 2026/27 farmgate milk price forecast to $9.25 per kgMS, within a range of $8–$10.50, down from the opening forecast of $9.75 per kgMS and a range of $8–$11 announced in May.

For the 2025/26 season, which ended on May 31, the co-op narrowed its forecast range to $9.60–$9.80 per kgMS, from $9.40–$10, with the midpoint unchanged at $9.70 — its second-highest on record.

The forecast compares with the record $10.16 per kgMS paid for the 2024/25 season.