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GDT auction dairy prices fall 0.9%, ending four straight gains

(BusinessDesk) Dairy prices fell 0.9%, ending a run of four gains, in the latest GlobalDairyTrade auction, led by declines in high-value rennet casein, cheddar and anhydrous milk fat.

The GDT-TWI Price Index fell to an average winning price of $US3285 a metric tonne. The price for whole milk powder, which accounts for about half of all products sold, rose 2.8% to $US3167 a tonne across all contracts, the highest level since April 3.

The price for rennet casein was the biggest decliner, falling 9.5% to $US7361 a tonne, followed by cheddar which dropped 7.4% to $US3300 and anhydrous milk fat, down 6.4% to $US2982.

The result comes a day after the ANZ Commodity Price Index showed prices for New Zealand-produced raw materials rallied in September in the biggest monthly gain in a year and a half. Dairy prices have been buoyed in recent months as droughts in North America sap the global supply.

In the latest GDT auction the price of skim milk powder fell 0.9% to $US3309 a tonne, milk protein concentrate declined 1.5% to $US5879 and lactose slid 6.3% to $US2000. Butter milk powder gained 4% to $US3144.

There were 139 winning bidders across 13 rounds, with 164 participating bidders out of 723 qualifying bidders.

Some 59,307 tonnes of product was sold for some $US194.8 million, making it the biggest auction since Fonterra Cooperative Group set up the platform in 2008.