The Global Dairy Trade index in New Zealand posted its first decline since the beginning of November, down 3.8 percent, follow the last event’s double-digit rally. Whole milk powder had the greatest decline, down 6.2 percent, followed by butter, down 2.8 percent. Lactose had the largest gain, up 8.6 percent, followed by anhydrous milk fat, up 3.7 percent, posting the largest increases.
«This GDT Event was always going to be a test for the market, given how prices spiked in the first week of March,» said Emma Higgens, senior dairy analyst at Rabobank.
She said there was more product on offer to buyers in this auction compared to two weeks ago, with more than 20 percent whole milk powder for sale and 4 percent skim milk powder available.
«The additional GDT volumes were significant and so for average whole milk powder prices to remain above the US$4000 mark is a really good result, as too was the (small) price gains for skim milk powder,» Higgens said.
Higgens said given global supply and demand dynamics, a strong milk price was still forecast.
«At a broad level, we think that the expensive cost of producing milk (and whole milk powder) in China, overlaid with the complexity of global shipping disruptions, alongside modest global milk production growth lends itself to elevated whole milk powder prices over the coming months.»
AMF index up 3.7%, average price US$6,155/MT
Butter index down 2.8%, average price US$5,659/MT
BMP not offered
Ched index not available, average price US$4,250/MT
LAC index up 8.6%, average price US$1,392/MT
SMP index up 0.7%, average price US$3,350/MT
SWP not offered
WMP index down 6.2%, average price US$4,083/MT
