Dairy product prices fall 9.9%, biggest drop since mid-2010
Prices of dairy products had their biggest decline since July 2010 in Fonterra's latest GlobalDairyTrade auction, pushing the price index below its 10-year average.
BUSINESSDESK: Prices of dairy products had their biggest decline since July 2010 in Fonterra Cooperative Group’s latest GlobalDairyTrade auction, pushing the price index below its 10-year average.
The GDT-TWI Price Index fell 9.9% compared to the last sale two weeks ago.
The average winning price dropped to $US2983 a metric tonne. Prices fell for all six products on offer and across all contracts.
The Real GDT-TWI, which is the GDT-TWI deflated by a measure of the US consumer price index, fell below its 10-year average for the first time since 2009.
The decline in prices comes as commodity prices hold near their lowest levels this year, based on the Thomson Reuters/Jefferies CRB Commodity Index of 19 globally traded commodities.
The index most recently rose 0.4% to 302.09.
Commodity prices have softened on signs demand may slow in China, the world’s fastest-growing major economy.
The average winning price for whole milk powder fell 11% to $US2847 a metric tonne and skim milk powder fell 7.6% to $US2871 a tonne.
Anhydrous milk fat dropped 6.9% to $US3304 a tonne. Cheddar fell 12.1% to $US2937 a tonne and milk protein concentrate declined 3.9% to $US4520 a tonne.
Rennet casein fell 11.9% to $US6424 a tonne.
There were 118 winning bidders over eight rounds, out of 134 participating bidders.
The number of qualified bidders rose to 610 from 603.
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Dairy product prices fall 9.9%, biggest drop since mid-2010
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