Dairy prices fall to new 15-month low paced by whole milk powder, volumes drop

Dairy product prices fell to a new 15-month low in the latest GlobalDairyTrade auction, paced by whole milk powder, and are now 23 percent lower than when Fonterra Cooperative Group forecast a record milk payout in February.

The GDT price index fell 1.8 percent to US$3,873 a tonne, down from US$3,950 a tonne two weeks ago and the seventh straight decline. Some 33,677 tonnes of product was sold, the lowest since June 2012 and down from 38,174 tonnes at the previous auction.

Fonterra's sales rose 21 percent in its first half though profit tumbled as its margins were squeezed by milk powder prices running ahead of products such as cheese and casein which count milk as a raw material. In the latest auction, cheddar fell 2.1 percent to US$4,108 a tonne, the lowest since March last year, while rennet casein rose 4.6 percent to a four-month high of US$11,861 a tonne.

Whole milk powder, the biggest product sold on the auction site by volume, fell 1.1 percent to US$3,877 a tonne, a 15-month low. Skim milk powder dropped 3.5 percent to US$3,733 a tonne while butter declined 3.8 percent to US$3,667 a tonne.

Butter milk powder fell 1.9 percent to US$3,950 a tonne and anhydrous milk fat rose 1.9 percent to US$4,255 a tonne. Milk protein concentrate and lactose weren't offered at the event.

There were 139 winning bidders out of 193 participating bidders at the auction over 14 rounds. The number of qualified bidders rose to 734 from 724 at the last auction.

(BusinessDesk)


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6952 0.0000 0.00%
AUD 0.8901 0.0000 0.00%
EUR 0.5907 0.0000 0.00%
GBP 0.5276 0.0000 0.00%
HKD 5.4294 0.0000 0.00%
JPY 78.9230 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1278.6 -9.430 2017-10-20T00:
Oil Brent 57.8 0.550 2017-10-20T00:
Oil Nymex 51.9 0.580 2017-10-20T00:
Silver Index 17.0 -0.177 2017-10-20T00:

Indices

Symbol Open High Last %
NZX 50 8124.1 8142.3 8124.1 0.07%
NASDAQ 6633.4 6640.0 6605.1 0.36%
DAX 13057.8 13063.6 12990.1 0.01%
DJI 23205.2 23328.8 23163.0 0.71%
FTSE 7523.0 7560.0 7523.0 0.00%
HKSE 28360.0 28519.8 28159.1 1.17%
NI225 21391.0 21489.3 21448.5 0.04%
ASX 5896.1 5924.9 5896.1 0.17%