Dairy product prices rise 2.3 percent in latest GDT auction as volumes stay high
Prices of dairy products gained in the latest GlobalDairyTrade auction and the volume sold remained at elevated level for a second sale, suggesting overseas buyers aren't fazed by elevated nitrate levels in Westland Milk's lactoferrin.
The GDT Price Index, previously known as the GDT-TWI Price Index, rose 2.3 percent compared to the last sale two weeks ago, the fourth gain in five auctions. The average winning price was US$4,941 a tonne, compared to US$4,847 a tonne.
The total volume of dairy products sold at the latest auction slipped to 56,173 tonnes, from 60,587 tonnes two weeks ago, which was the biggest on record for the GDT site. Prime Minister John Key said this week that Chinese officials were responding constructively to the Westland Milk issue and understood it wasn't a food safety issue.
Commodity prices have broadly strengthened based on the Thomson Reuters/Jefferies CRB Commodity Index, which is near its highest level in four months.
The average winning price of whole milk powder, the biggest product by volume, rose 2.8 percent to US$4,005 a tonne. Skim milk powder fell 0.7 percent to US$4,426 a tonne.
The price of anhydrous milk fat rose 7.1 percent to US$4,931 a tonne and butter milk powder fell 3.1 percent to US$4,689 a tonne. Butter rose 3.3 percent to US$3,614 a tonne.
Cheddar rose 0.9 percent to US$4,375 a tonne. Lactose wasn't offered and milk protein concentrate rose 1.5 percent to US$7,828 a tonne. Rennet casein rose 1.9 percent to $10,085 a tonne.
There were 112 winning bidders over 14 rounds. There were 184 participating bidders out of a total number of qualified bidders of 866.