Global dairy prices continue to fall

Traded dairy products did not escape an overnight global slump in commodity prices as the US-China trade war intensified.

Average prices at Fonterra’s latest GlobalDairyTrade auction fell 1.2% to $US3481 a tonne. This compares with a 1.3% drop in the June 5 auction.

Benchmark whole milk powder, which made up half the volume sold, fell 1.0% to $US3189/t, compared with a 1.1% fall in the previous auction.

Prices rose in two categories: butter was up 0.8% to $US5611/t and a small volume lactose lifted 8.2% to $US769/t.

Anhydrous milk fat fell 2.5% to $US6060/t.

Demand for skim milk powder eased, with the price falling 1.1% to $US2003/t compared with a slight rise of 0.3% in the previous auction.

Cheddar fell 3.6% to $US3847/t, continuing a recent trend, while rennet casein fell 2.2% to $US4898/t after previously rising 3.9%.

Butter milk powder, which surged 17.7% to $US2314/t a fortnight ago, was not offered.

The total volume sold was slightly up at 21,634t, as were the 127 winning bids, but the participants fell to 165.

The next auction is on July 3.