No successful trades were made on the new national milk auction platform on May 19, but the gap between bids and offers has been closing in Victoria.
Suppliers were offering Victorian milk at $7.40/kg, while bids from milk buyers ranged from $6.70 to 7.15/kg, at an average of $6.94/kg.
This was up 26¢/kg from the last auction on May 5.
The total volume of milk offered was 118.2 million litres, up 16 per cent compared to the last auction, and equivalent to about $69 million value.
The Milk2Market company, which runs the auctions, noted there was a 16 per cent increase in volumes offered in both NSW and Victoria at the latest auction.
“With more opening price announcements from dairy companies, there was a narrowing of the gap between milk suppliers and milk buyers’ offers by 13¢/kg,” the company said.
“However, the spread (gap) between offer prices and bid prices remains a barrier to settlement of milk contracts for the new season.”
More attention may be focused on the outcome of the next auction on June 2, which is likely to follow the announcement of opening milk prices.