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%|