Prices drop to a three-year low in Fonterra's GDT sale
Dairy product prices fell for the third straight sale in Fonterra's GlobalDairyTrade auction, hitting a new three-year low as China's slowdown bites and euro-zone uncertainty.
BUSINESSDESK: Prices of dairy products fell for the third straight sale in Fonterra’s GlobalDairyTrade auction, reaching a new three-year low as China’s slowdown and euro-zone uncertainty weighed on commodities.
The GDT-TWI Price Index fell 6.4% compared to the last sale two weeks ago. The average winning price dropped to $US2618 a metric tonne, the lowest since August 2009.
The price of whole milk powder fell 8.9% to $US2546 a tonne and skim milk powder fell 5.4% to $US2573 a tonne.
The average price at the sales has now shed 41% in the past 12 months and this year prices have declined in eight of the 10 auction events.
The decline reflects a broader slide in commodity prices as traders factor in weaker demand from China, uncertainty in Europe that has helped drive up the US dollar and increased supply.
The Thomson Reuters/Jefferies CRB Commodity Index has declined to its lowest since October 2010.
Anhydrous milk fat dropped 11.9% to $US2499 a tonne in the latest auction.
Cheddar fell 0.2% to $US2857 a tonne and milk protein concentrate declined 1.3% to $US3940 a tonne.
Rennet casein rose 0.7% to $US6244 a tonne.
There were 136 winning bidders over 12 rounds, out of 147 participating bidders. The number of qualified bidders rose to 635 from 620.
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Prices drop to a three-year low in Fonterra's GDT sale
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