GDT Auction result bounces up 4.3% and farmgate milk price forecast is up to 27.5ppl
Posted on: 09/12/20
Last Tuesday’s auction saw the average price jump by 4.3% to average US $3261 per tonne, the largest increase since July.
Prices for all 8 products auctioned rose with notable movements:
WMP up 5.0% to average US $3182 tonne
Butter up 3.8% to average US $3986 tonne
SMP up 3.6% to average US $2889 tonne
Cheddar up 2.4% to average US $3734 tonne
Hot on the heels of the auction came a price revision from New Zealand Co-op Fonterra that the current years ex-farmgate milk price pay-out range of 6.30 to 7.30kg Milk Solids had been narrowed down to a range of 6.70 to 7.30.
This means the mid-point price forecast has risen from 26.67ppl (6.8 cents) to 27.45ppl (7.0 cents) based on the November average exchange rate.
Significant recovery in the Chinese economy where Dairy demand has experienced a strong and fairly quick turnaround, post Covid is a key factor in the upward revision.