An increase in the supply of milk was reflected in Fonterra’s globalDairy Trade trade Weighted Index droped 13.7% at last night’s auction,.
It is still above average, though.
The gDT-TWI is an index that shows the percentage change in the average price of a basket of products currently traded on globalDairyTrade – Whole Milk Powder, Skim Milk Powder, and Anhydrous Milk Fat.
The gDT-TWI takes the percentage changes in prices discovered in a globalDairyTrade event and weights them based on total international dairy product trade flows.
Paul Grave, globalDairyTrade Manager, said the result reflected supply increasing globally in response to what has been a very strong price signal over recent months. Concerns in the market about short term product availability, which to a large extent underpinned recent high prices, appear to have eased.
| Average price | US $ per tonne FAS | % change |
| Anhydrous Milk Fat | 4,620 | -14.1 % |
| Skim Milk Powder | 3,067 | -11.8 % |
| Whole Milk Powder | 3,224 | -14.8% |
Homepaddock 
And which decline already has been balanced by favorable currency movements in recent times.
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