Dairy product prices drop, falling 4.2%

Fonterra CEO Theo Spierings

Dairy product prices continued their drop to the lowest level since February 2013 in the latest GlobalDairyTrade auction, paced by rennet casein and whole milk powder.

The GDT price index dropped 4.2 percent to US$3,756 a tonne, the eighth consecutive drop and the lowest since February 2013. Some 37,012 tonnes of product was sold, up from 33,677 two weeks ago.

In the latest GDT auction, rennet casein slumped 10.2 percent to US$10,672 a tonne, and whole milk powder sank 8.5 percent to US$3,594 a tonne. Anhydrous milk fat slid 5.0 percent to US$4,058, while Butter milk powder fell 1.9 percent to US$3,628 a tonne.

Butter was unchanged at US$3,634 a tonne.

Cheddar climbed 8.0 percent to US$4,236 a tonne, while skim milk powder rose 2.1 percent to US$3,863 a tonne.

Milk protein concentrate and lactose weren't offered at the event.

The New Zealand dollar was trading at 84.60 US cents at 2:34am Auckland time. After the release of the latest GDT data, the kiwi dropped as low as 84.25 cents and was recently trading at 84.30 cents.

There were 144 winning bidders out of 195 participating bidders at the auction over 13 rounds. The number of qualified bidders was 738, up from 734 two weeks ago.

(BusinessDesk)

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