Slight drop in Ornua PPI for November

Ornua’s Purchase Price Index (PPI) has dropped slightly in its latest index for the month of November, according to the co-operative.

The dairy exporter’s price index for November is 104.9, adjusted from 106.5 in October.

This translates to 31.3c/L VAT inclusive, based on Ornua’s product purchase mix and assumed costs of 6.5p/L.

The November 2018 index reflects weaker returns for butter, balanced by improved cheese and stable powder returns, according to a spokesperson for Ornua.

Source: Ornua

This is the third lowest the index has dropped to this year, with weaker indices recorded in the months of March and April last before a recovery in the summer.

GDT improves in latest index

Meanwhile, the latest Global Dairy Trade (GDT) index has got a lift in its most recent auction – event 225 – which concluded with the GDT Price Index up 2.2% yesterday (Tuesday, December 4).

This increase comes after seven consecutive falls in index for the milk price indicator.

Lasting two hours and 16 minutes, 178 bidders participated across 18 rounds with a total of 139 emerging with winning bids.

A total of 36,450MT of product was sold at today’s auction.

Key results:
  • AMF index up 3.9%, average price US$4,755/MT;
  • Butter index up 2.7%, average price US$3,745/MT;
  • BMP index up 16.9%, average price US$2,973/MT;
  • Ched index down 2.2%, average price US$3,184/MT;
  • LAC index up 0.5%, average price US$918/MT;
  • RenCas index up 2%, average price US$5,167/MT;
  • SMP index up 0.3%, average price US$1,970/MT;
  • SWP index not available, average price not available;
  • WMP index up 2.5%, average price US$2,667/MT.

BMP was the most dramatic mover on the day, getting a substantial 16.9% rise in index, while Anhydrous Milk Fat (AMF) also got a rise of 3.9%.

Cheddar saw a decrease of a notable 2.2% in its price index.

The only product on the day to see a decrease was cheddar (Ched), while all the other products experienced a rise.