Prices of dairy products rise for only the fourth time this year in the latest GlobalDairyTrade sale overnight, paced by whole milk powder, the biggest product by volume sold through the platform by Fonterra.
BUSINESSDESK: Prices of dairy products rose for only the fourth time this year in the latest GlobalDairyTrade sale overnight, paced by whole milk powder, the biggest product by volume sold through the platform by Fonterra.
The GDT-TWI Price Index rose 3.5% compared to the last sale in July. The average winning price made $US2797 a metric tonne. Whole milk powder rose 3.5 % to $US2675 and skim milk powder gained 3% to $US2805.
Dairy products are New Zealand’s biggest export by value and the gain in the latest sale should be a positive for the kiwi dollar, though any reaction has been overwhelmed by reaction to the Federal Reserve’s latest statement, which lifted the greenback across the board.
Fonterra has said it expects global supply and demand to come more into balance in the second half of the year, arresting the slide in prices.
The kiwi recently traded at 80.84 US cents, down from 81.07 cents late yesterday. The trade weighted index was at 73.04, little changed from yesterday.
In the latest GDT auction, anhydrous milk fat fell 1.3% to $US2804 a tonne and butter milk powder dropped 8.6% to $US2416.
Cheddar rose 5.5% to $US3159 a tonne and lactose by 3.6% to $US1981. Milk protein concentrate gained 11.5% to $US4637 and rennet casein rose 7.3% to $US6807.
There were 142 winning bidders over 13 rounds. There were 195 participating bidders out of a total number of qualified bidders that rose to 702 from 681.
