Global Market Updates
Milk from Australian dairy farms are made into products that are sold locally and in countries around the world. Understanding what is happening in all these markets will provide an insight to important trends that strongly influence Southern Region farmgate milk prices. Keep up to date with the latest global dairy market developments
GDT Index Lifts
The GDT Index rose 0.9% at event #411, creeping up to mid-June levels despite seasonally higher volumes offered. Fonterra Regular WMP C2 held steady at US$3,555/t. Fonterra MH SMP C2 increased 5.8% to US$3,665/t, nearly US24c below the...
Fonterra Sets July Milk Output Record
In its latest Global Dairy Outlook, Fonterra reported that July production rose 8% year-over-year to 22.4m kgMS — a new high for July. Season-to-date (June-July) collections are +7.4% above the season prior, keeping in mind that June and July output represent less...
Pulse Powder Prices Gain
This week’s Pulse event was positive for powders. Regular grade NZ WMP settled at US$3,610/t, +1.5% higher than GDT #410 and +2.8% on the previous Pulse settle price. Instant NZ WMP also gained from the last event, up US$100/t to US$3,705/t. Medium heat SMP prices...
New Zealand July Milk Grows
The latest available monthly milk production data shows July milk output rose 7.9% year-over-year on a solids basis and is tracking 5.6% ahead of the prior-season (May to July) comparable. Production also rose on a tonnage basis, up 7.0% YOY for July and +4.5% ahead...
GDT Index Lifts
The GDT Index rose 2.3% at event #410 as North Asian buyers dominated an auction where powder values increased while fats declined. Fonterra Regular WMP C2 increased 3.3% to US$3,555/t and is now at a narrow difference relative to NZ SMP. Fonterra MH SMP C2 rose 6.9%...
Domestic Cheese Demand Softens in June
USDA ERS data shows domestic commercial disappearance of cheese declined 1.5% YOY in June, extending a soft patch after May's modest gain. The decline was broad-based as American cheese fell 1.3% YOY. Other-Than-American cheese varieties (including mozzarella)...
Pulse Prices Converge
This week’s GDT Pulse event delivered softer prices for fats while powder values lifted. WMP prices increased around 2% from GDT #409, with regular NZ WMP settling at US$3,510/t. SMP was stronger again, with NZ medium heat SMP reaching US$3,335, lifting 2.9% from the...
WASDE Report Supportive for New Crop Corn
In its August 2026 WASDE report, the USDA lowered 2026/27 ending stocks to 1.653bn bushels, down from 1.790bn in July and well below expectations for 1.725bn. Given extremely strong demand, the stocks-to-use ratio is nearing 10%, a psychologically bullish level for...
GDT #409 Index Marginally Higher
The GDT Index rose 0.1%, with mixed trends across commodities. North Asia returned as the leading buyer at this event, and the Middle East increased its share of purchases across the board compared to the same auction last year. Milk supplies are comfortable and...
China’s Milk Supply Continues to Slow
milk production declined 5.8% YOY in June according to the latest China Dairy Monthly Report. This was the sixth consecutive monthly decrease, with milk production estimated at 34.02bn kg over the last year. Liquid milk consumption was +4.0% YOY for the month,...