Market sentiment drops after second weak GDT

However, not everything is clear-cut. In addition to falling prices, there were also higher prices. What is important for New Zealand is that the price of whole milk powder, the largest product at the auction, fell significantly (-3,7%). That sets the tone and also elicits the comment from commentators that 'the positive momentum in the market has now turned'. This remains to be seen, but it seems to be more in line with the signal that Fonterra a few days ago issued the milk price forecast for the new season. For the new milk price year starting 1 July, the milk price forecast remains NZ$10 per kilo milksolids, but the lower end of the forecast range has been revised downwards to NZ$8,00 per kilo milksolids.

However, there are still some struggles to be had. The price of butter remained relatively stable, while AMF (butter oil) actually rose in price. In recent years, these prices generally do not move so independently of each other. 

Skimmed milk powder did not see much change in price. The strongest price movements were observed in cheeses. The cheddar price (New Zealand product) has started an equally rapid downward flight after a short-lived peak in early May. The price of mozzarella (European supply), on the other hand, continues to rise. The different origins of the cheeses may play a role, but the price development is also in line with that of cheddar and mozzarella in general. 

Lactose is still sold at relatively high prices, although the price is slowly going down. The average sales price of the auctioned product, as reported, did see a fairly strong decrease of 7,3%. The volume sold is on the rise again.