Market News

Fonterra to reduce GDT offerings

Fonterra is adjusting the amount of product it plans to offer on the Global Dairy Trade auction over the next 12 months. Citing anticipated two-percent reductions in milk production from its farmers, the New Zealand cooperative will reduce offerings at the GDT by nearly 63 thousand metric tons over the next three months. It is expected that as market conditions change, they will increase offerings by 6,900 metric tons later in the year.

Director of Global Ingredients, Kelvin Wickham says the cooperative will also modify its product mix by shifting volumes away from Whole Milk Powder (WMP) into other products. Fonterra is currently selling 70 percent of its products outside the GDT so they do not anticipate an impact on inventories.

 

Cash cheese blocks slipped 3.75 cents on the Chicago Mercantile Exchange on Thursday on two sales. Barrels held steady, butter increased 1.25 cents with 15 loads sold. Nonfat dry milk was a half-cent higher. Class III futures drifted a little lower in response to the blocks.

Milk production is trending lower as temperatures get a little warmer. Dairy Market News reports demand for Class I is drawing milk from the North Central and Southwest into the Southeast as school districts are placing orders for delivery next week. Florida imported 60 loads this week. The Sunshine State has heat indexes hitting triple-digits. Heat is also pushing production lower in California, Arizona and New Mexico.