Dairy product prices had the biggest drop in almost 20 months at Fonterra Cooperative Group's latest GlobalDairyTrade auction as whole milk powder fell to its lowest level in more than a year.
The GDT price index dropped 8.9 percent to US$4,124 a tonne from US$4,563 per tonne two weeks ago, the fourth straight decline and the lowest since August 2012. Some 39,653 tonnes of product was sold, up from 39,008 tonnes two weeks ago.
Soaring prices of global dairy products helped Fonterra lift sales in its first half by 21 percent, including record shipments to China in December, although profit tumbled 53 percent as the high price of milk, which is based on reference products including milk powder, drove up its input costs for products such as casein and cheese. The company said last month it sees no let-up in the second half because factory constraints have led to an unfavourable product mix.
In the latest GDT auction, rennet casein rose 5.5 percent to US$11,105 a tonne while cheddar fell 3.5 percent to US$4,438 a tonne. Whole milk powder, the biggest product sold by volume, fell 8.4 percent to US$4,033, its biggest decline since May last year.
Skim milk powder prices dropped 9.6 percent to US$4,126 a tonne and butter declined 11 percent to US$4,040 a tonne.
Butter milk powder prices tumbled 15 percent to US$4,211 a tonne and milk protein concentrate declined 4.3 percent to US$8,436 a tonne. Lactose wasn't offered at the event.
There were 167 winning bidders out of 201 participating bidders at the auction over 11 rounds. The number of qualified bidders rose to 756 from 747 at the last auction.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Trump’s close financial & political ties with Russia will ultimately hurt him, security expert says
- NZ’s responsible investment funds increase to almost $80b
- TradeGecko 'doing millions in revenue' as ex-Kiwi startup builds customers from Singapore
- Bank loan books hit fresh high of $228b but margins squeezed
- While you were sleeping: UPDATED Wall Street mixed as McDonald's disappoints
Most listened to
- Responsible Investment Association Australasia CEO Simon O’Connor on why responsible investment is here to stay
- Security expert Paul Buchanan on why Trump's glee over the Russian DNC hack could backfire
- Forty years of punitive drug prohibition has failed ‘by any measure’, says Ross Bell – so let’s decriminalise the lot
- With MediaWorks reportedly closing in on a CEO candidate, NBR’s Nick Grant opines on what the role requires
- Infometrics economist Mieke Welvaert gives her take on this morning's merchandise trade data