Milk buyers lifted their bid prices in Victoria at the Milk Exchange’s third trading event on Wednesday.
Milk buyers lifted their bid prices in Victoria at the Milk Exchange’s third trading event on Wednesday.
But no contracts were settled as bids failed to meet the offer prices from milk suppliers.
Milk Exchange general manager, commercial development Richard Lange said there was a 16 per cent increase in volumes offered by suppliers in both NSW and Victoria at this auction.
Offers totalled 118.2 million litres of farm milk.
New buyers entered the market and bidding was higher in both Gippsland (up 38 cents a kilogram milk solids) and south-west Victoria (up 8c/kg MS).
In Victoria overall, bids from milk buyers ranged from $6.70-$7.15/kg MS at an average of $6.94/kg – up 26c/kg MS from last auction on May 5.
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Mr Lange said with more opening price announcements from dairy companies, the gap between milk suppliers and milk buyers narrowed by 13c/kg MS.
“However, the spread (gap) between offer prices and bid prices remains a barrier to settlement of milk contracts for the new season,” he said.
“The announcement of prices on June 1 will be an important driver for trades at subsequent auctions.”
The next trading event will be on Wednesday, June 2, from 10am to 2pm.
Source: farmonline.com.au
