Dairy product prices rise 1.1 percent in final GDT auction of the year
(BusinessDesk) - Prices of dairy products rose in the final GlobalDairyTrade auction of the year, while whole milk powder, the biggest product by volume, fell for the fourth sale in a row,
The GDT-TWI Price Index rose 1.1 percent compared to the last sale two weeks ago. The average winning price rose to $US3,311 a metric tonne from $US3,290 a tonne in the last auction. Whole milk powder fell 0.6 percent to $US3,147 a tonne while skim milk powder gained 1.1 percent to $US3,419 a tonne.
Fonterra, the world's largest exporter of dairy products, raised its forecast farmgate milk payment this month and chief executive Theo Spierings said global dairy prices "are likely to move higher in the first half of 2013" given rising feed prices and unfavourable climatic conditions in the US, Ukraine, Russia, Brazil and Argentina. Thomson Reuters/Jefferies CRB Commodity Index rose 0.2 percent to a two-week high overnight.
The total volume sold fell to 47.195 tonnes from 52,596 tonnes two weeks ago.
Anhydrous milk fat fell 0.1 percent to $US3,180 a tonne. Butter milk powder fell 0.4 percent to $US3,600 a tonne with just the Feb. 13 contract sold. Cheddar rose 4.9 percent to $US3,510 a tonne. Lactose wasn't offered for sale.
Milk protein concentrate rose 1 percent to $US6,039 a tonne and rennet casein rose 6.9 percent to $US8,477 a tonne.
There were 145 winning bidders over 11 rounds. There were 195 participating bidders out of a total number of qualified bidders of 737.