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Global Dairy Trade Auction November 2019

Wednesday, 20 November 2019 at 2:32pm

An overnight Global Dairy Auction event recorded another lift in dairy prices, with milk powders driving the latest increase. 

 

 

Prices rose 1.7 percent, with average prices reaching US$3481/t.  It's the fifth consecutive rise with prices continuing to hold in the range of US$3200-3500/t since early 2019. 

 

WMP prices were up 2.2 percent to an average price of US$3321/t, which is the highest average price for WMP since December 2016.  Prices lifted from 2.0 percent to 2.6 percent across all delivery dates. 

 

SMP prices lifted 3.3 percent to an average price of US$3017/t, which is the highest average price since August 2014 continuing the strength seen in this commodity during the previous six GDT events.

 

Milkfats were weaker at the latest event, with AMF and butter prices down 1.5 percent and 1.3 percent respectively. 

 

AMF prices were US$5108/t, and prices decreased across all delivery dates, while butter prices were US$4061/t with prices also decreasing across all delivery dates. 

 

These gains in global dairy prices are prompting economists to push up their milk price forecasts, with a $7.50 per kilogram of milk solids price now looking possible.

 

Fonterra itself has a current wide forecast price range of $6.55 to $7.55, having increased the price recently from the season-starting forecast of a range between $6.25 and $7.25.