Dairy product prices fall 5.3% in third straight decline
GDT auction eases from April's record highs as volumes increase and the effects of drought wash out of the supply chain.
Prices of dairy products fell for the third auction in a row, continuing to ease from April's record highs as volumes increase and the effects of drought wash out of the supply chain.
The GDT-TWI Price Index fell 5.3 percent compared to the last sale two weeks ago. The average winning price fell to $US4443 a tonne from $US4549. Whole milk powder, the biggest product by volume, fell 7.1 percent to $US4643 a tonne, the lowest since the March 5 auction.
Fonterra raised its forecast 2014 payout to farmers saying that even though the signs are that global dairy commodity prices have peaked they are expected to remain at elevated levels through 2013 and remain relatively strong in 2014.
The total volume of dairy products sold at the latest auction rose to 24,252 tonnes, the highest since the February 19 auction. The volume shrank to a drought-affected 13,912 tonnes in the early April sale.
The price of anhydrous milk fat fell 4.3 percent to $US4478 a tonne and butter milk powder rose 3.3 percent to $US4410. Butter fell 2.6 percent to $US3743.
Cheddar sold at an average $US4877 a tonne. No results were given for lactose and milk protein concentrate and rennet casein were not offered. Skim milk powder fell 3.2 percent to $US4164.
There were 99 winning bidders over 10 rounds. There were 162 participating bidders out of a total number of qualified bidders of 825.
(BusinessDesk)
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Dairy product prices fall 5.3% in third straight decline
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