Dairy product prices slide for fourth straight auction
Dairy product prices fell at the Global Dairy Trade auction, retreating for the fourth straight auction amid signs of increased production.
The GDT price index declined 3.4% from the previous auction two weeks ago to $US2970. Some 35,042 tonnes of product was sold.
Whole milk powder fell 2.7% to $US2778 a tonne.
"While the derivatives market was expecting a lift, a further decline in whole milk powder prices is no real surprise," AgriHQ says, pointing to signs of increased New Zealand milk production in October.
"Buyers are unlikely to feel much urgency to buy product right now with the prospect of more milk being available from New Zealand," AgriHQ says.
At the latest GDT auction, rennet casein sank 12.6% to $US4644 a tonne, while skim milk powder dropped 6.5% to $US1701 a tonne.
"It's likely skim milk powder prices will come down further," AgriHQ noted.
Butter shed 5.9% to $US5144 a tonne.
"The derivatives market did expect butter prices to come back, but this decline was larger than expected," AgriHQ says.
Cheddar fell 4.2% to $US3831 a tonne, while the price of anhydrous milk fat was steady at $US6887 a tonne.
The latter "indicates buyers are reasonably well stocked through to the end of the year, but there is still longer-term demand for anhydrous milk fat," AgriHQ says.
Buttermilk powder was not offered at this event. No prices were available for lactose.
The New Zealand dollar last traded at 68.36USc at 11.28am in New York, compared with 68.09US at 5pm in Wellington the previous day.
There were 139 winning bidders out of 160 participating at the 14-round auction. The number of qualified bidders was 557.