International milk prices fell while volumes were up at this month’s second Global Dairy Trade (GDT) auction on Tuesday.
The GDT Price Index was down 1%, with an average selling price of $3,289 per metric ton. The index fell 3.3% at the previous auction on July 4, with an average selling price of $3,334, according to GDT Events.
A total of 25,956 tons of dairy products were sold at the latest auction, up about 4.5% from the previous sale, the auction platform said.
AMF index up 3.4%, average price US$4,745/MT
Butter index down 2.7%, average price US$4,705/MT
BMP index not available, average price not available
Ched index down 10.1%, average price US$3,955/MT
LAC not offered
SMP index down 0.6%, average price US$2,503/MT
SWP not offered
WMP index down 1.5%, average price US$3,100/MT
Dairy commodity prices have continued to decline in recent months. Economists at ANZ Bank now forecast a farmgate milk price of $7.75/kg milksolid (MS) for the 2023-24 season.
Milk price forecast drops sharply
We have revised down our farmgate milk price forecast for the 2023-24 season by 50c to $7.75/kg milksolid.
Our forecast for 2022-23 remains at $8.20/kg milksolid.
Global demand for dairy products has been impacted by deteriorating economic conditions affecting consumer demand, particularly in China.
The relatively weak NZD remains supportive of the farmgate milk price but is not sufficient to offset the impact of lower returns for dairy commodities.
Source : Reuters July 18th 2023 (Reporting by Rahul Paswan and Ashitha Shivaprasad in Bengaluru Editing by David Goodman ) and additions by editing team at Dairynews7x7