13.7% drop in price at dairy auction

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%

One Response to 13.7% drop in price at dairy auction

  1. Adolf Fiinkensein says:

    And which decline already has been balanced by favorable currency movements in recent times.

    Like

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