Dairy product prices rose by 3% at the GDT auction

During the overnight Global Dairy Trade auction, the overall price index rose by 3%. This marked the third consecutive increase in the indicator: at the previous trading session, the growth was 2.5%, and prior to that — 1.2%.

The most significant impact on Fonterra's dairy price indicator came from whole milk powder, which rose in price by 5.9% and reached an average cost of 3,971 USD per metric ton. Skimmed milk powder added 3.1%, climbing to 4,109 USD per metric ton. Among key products, cheddar demonstrated the largest jump — its price grew by 8.6% (to 3,970 USD per metric ton), while mozzarella increased in price by 5.8% (to 4,104 USD per metric ton). At the same time, butter became cheaper by 4.7% to an average mark of 4,503 USD per metric ton, and anhydrous milk fat decreased in price by 3.2% to 5,306 USD per metric ton.

In the current trading session, 166 bidders participated, of which 111 won across 18 rounds and purchased a total of 39,806 metric tons of products. At the previous event, there were 145 participants, 105 winners in 17 rounds, and the sales volume amounted to 42,088 metric tons.

Fonterra's current forecast for the milk purchase price for the 2026/27 season is in the range of 9.00 to 10.50 dollars per kilogram of milk solids (kgMS), with the midpoint estimate at 9.75 dollars per kgMS following its adjustment on October 30. For comparison, the indicator for the 2025/26 season was 9.69 dollars per kgMS, and the record payout in the 2024/25 season reached 10.16 dollars per kgMS.