Archive: Further declines at Fonterra GDT auction

Published 3 September 14

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Prices fell for all products at the latest Fonterra Global Dairy Trade (GDT) auction on 2 September, continuing the downward trend seen since the start of the year. The trade-weighted auction index fell by 6.0% from the previous auction, with the average winning price down to US$2,787/tonne.

WMP, which accounts for the majority of volumes traded at the auction, had the smallest decline in price, with its index down by 4.3%. SMP fell by 9.5% on average, although SMP from the UK maintained its premium over the average selling price.

The maximum volumes offered at the latest event increased to 59,000 tonnes, up from 48,000 tonnes at the previous auction on 19 August. Although volumes offered at the auction tend to increase around this time of year, strong milk production has meant that product availability has been higher than normal.

Detailed results from the latest auction can be found on the DairyCo website here.

Further declines at Fonterra GDT auction