Dairy product prices fall in first drop since July
GDT price index falls 3%. With special feature audio.
Dairy product prices fell at the Global Dairy Trade auction, the first decline since July.
The GDT price index fell 3.0% to $US2880, down from $US2975 at the previous auction two weeks ago.
Some 33,937 tonnes of product was sold, down from 35,086 tonnes at the previous auction.
Whole milk powder dropped 3.8% to $US2681 a tonne.
"Average prices were down for virtually all commodities on offer, the exception being butter milk powder but certain shipping periods were better supported," AgriHQ analyst Susan Kilsby says.
"Higher prices were achieved for some commodities with a December 2016 shipping date."
In terms of whole milk powder prices, sales for the December shipping period drew stronger demand with Contract 2 prices lifting by 0.3%, according to Ms Kilsby.
At the latest GDT auction, lactose sank 9.7% to $US744 a tonne, while skim milk powder fell 3.9 % to $US2209 a tonne.
Rennet casein declined 3.7% to $US6574 a tonne, while cheddar weakened 2.3% to $US3430 a tonne, and anhydrous milk fat decreased 1% to $US4954 a tonne.
Butter slipped 0.3 % to $US3891 a tonne.
Bucking the trend, butter milk powder jumped 9.3% to $US2408 a tonne.
The New Zealand dollar last traded at 72.14USc at about 12.50pm in New York, compared with 72.75USc at 5pm in Wellington the previous day.
There were 125 winning bidders out of 166 participating at the 13-round auction. The number of qualified bidders rose to 617, up from 616 at the previous auction.
(BusinessDesk)
Margreet Dietz
Wed, 05 Oct 2016
Wed, 05 Oct 2016
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Dairy product prices fall in first drop since July
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