Dairy product prices recorded their sixth straight decline in the latest GlobalDairyTrade auction, returning to levels of a year ago and adding to expectations Fonterra Cooperative Group will trim its forecast for a record milk payout.
The GDT price index fell 1.1 percent to US$3,950 a tonne, from US$4,047 a tonne two weeks ago, the lowest since February 2013. Some 38,174 tonnes of product was sold, up from 36,549 tonnes at the previous auction.
The auction comes after figures showed the ANZ Commodity Price Index dropped to an eight-month low in April, led by dairy products, to round out the first annual decline since February last year. Fonterra is forecasting a record $8.65 per kilogram of milk solids for the 2013/14 season, based on its prediction three months ago.
Whole milk powder, the biggest product sold on the auction site by volume, fell 1.7 percent to US$3,928 a tonne, a 14-month low. Rennet casein gained 6.8 percent to US$11,353 a tonne and cheddar dropped 1.8 percent to US$4,195 a tonne. Skim milk powder dropped 2.3 percent to US$3,873 a tonne while butter gained 1.6 percent to US$3,892 a tonne.
Butter milk powder fell 1.2 percent to US$3,713 a tonne. Milk protein concentrate and lactose weren't offered at the event.
There were 138 winning bidders out of 207 participating bidders at the auction over 13 rounds. The number of qualified bidders fell to 724 from 764 at the last auction.