Global Dairy Trade: Latest results show 1.6pc rise in prices

Prices are up in the latest Global Dairy Trade auction, held overnight, by 1.6 per cent across the board.

The modest increase comes after a flat previous event on November 22, where prices hadn’t moved much from the November 8 auction beforehand.

While anhydrous milk fat didn’t budge, remaining at US$5573/metric ton, the rest of the products on offer were on the up.

Whole milk powder rose 2.1 per cent to an average of US$3104/MT and skim milk powder — Fonterra’s second-biggest reference product — increased 1.2 per cent to an average of US$2671/MT.

Butter was up a bit to 0.7 per cent to an average of US$4936/MT and buttermilk powder lifted 2.8 per cent to an average of US$2387/MT.

Lactose had a respectable jump of 5.3 per cent to an average of US$793/MT.

However, the largest leap went to cheddar, with an impressive rise of 9.7 per cent to an average of US$3986/MT.

Newcomer mozzarella was offered at this auction for the first time, at an average of US$4005/MT.

A total 29,559MT of product was purchased by 123 successful bidders, out of 168 participating bidders overall.

On October 9, Fonterra raised its forecast farmgate milk price for 2023-24 — to a range of $6.50–$8/kgMS, with a midpoint of $7.25.

This followed downgrades on August 18 to $6-$7.50/kgMS, with a midpoint of $6.75, and on August 4 of $6.25-$7.75/kgMS.