Dairy prices fall 2.1%, extending decline from record high
The GDT-TWI Price Index falls 2.1% compared to the last sale two weeks ago in only the second decline this year.
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Prices of dairy products extended their decline from a record high as a resurgent US dollar weighed more generally on commodity prices and concerns abated about the impact of drought in the North Island.
The GDT-TWI Price Index fell 2.1 percent compared to the last sale two weeks ago in only the second decline this year. The average winning price fell to $US4549 a tonne from $US4597 a tonne. The price reached $US4968 a tonne last month, the highest since the GDT platform began in July 2008. Whole milk powder, the biggest product by volume, fell 1.7 percent to $US4722.
The Dollar Index, which tracks the greenback against a basket of currencies, is at its highest levels this year amid speculation the Federal Reserve may signal an end to quantitative easing, though it eased overnight on weaker-than-expected US industrial production.
The total volume of dairy products sold at the latest auction was 17,637 tonnes from 17,237 tonnes two weeks ago.
The price of anhydrous milk fat fell 0.2 percent to $US4598 a tonne and butter milk powder dropped 5.1 percent to $US3876. Butter tumbled 12.4 percent to $US3846.
Cheddar, lactose and milk protein concentrate were not offered. Rennet casein rose 3.7 percent to $US10,105 a tonne and skim milk powder fell 2.8 percent to $US4252.
There were 91 winning bidders over 16 rounds. There were 154 participating bidders out of a total number of qualified bidders of 811.
(BusinessDesk)
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Dairy prices fall 2.1%, extending decline from record high
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