GDT Auction Records 7 Year Record Average
Posted on: 09/02/21
Tuesdays GDT Auction rose a further 1.8% hot on the heels of an impressive 4.8% only two weeks ago and continues a run of 9 increases from the past 10 Auctions since 1st September 2020 covering a 5 month period. Which has seen the all products price/index rise by 21%.
The surge in demand is driven by strong demand from China and South East Asia.
This run of significant rises in the GDT Auction results has resulted in Fonterra revising its farmgate milk price forecast up by 20 cents kg to a range of $6.90 (27.33ppl) to $7.50 (29.71ppl) per kg MS with a mid-point of $7.20 (28.52ppl). There are certainly a heap of GB liquid middle ground processor farmer suppliers and milk brokerage suppliers who never thought the New Zealand farmgate milk price would eclipse their price pay-out.
One New Zealand dairy farmers reaction was that the revised forecast coming towards the end of his milk year meant he had an extra $10,000 to spend on a tractor and that tractor sales in New Zealand were booming!! Across the globe some farmers think and react in identical ways to price increases.
