Sharechat Logo

Fonterra dairy prices gain for first time in two auctions

Wednesday 18th January 2012

Text too small?

Prices of dairy products sold on Fonterra Cooperative Group’s GlobalDairyTrade platform rose, clawing back most of the losses from the previous two auctions.

The GDT-TWI Price Index increased 1.5 percent from the last sale a fortnight ago. The average winning price across all products rose to US$3,701 per metric tonne from US$3,654 at the Jan. 3 sale.

The price of whole milk powder was unchanged at US$3,652. Whole milk powder typically accounts for more than half the product sold on the platform.

The dairy exporter sold 31,026 metric tonnes of product at the auction, for a total price of US$114.8 million. That’s the smallest volume sold at an auction since July 19, though still up by almost a third from a year ago.

Anhydrous milk fat prices rose 2.8 percent to US$4,084 per metric tonne, butter milk powder fell 4.3 percent to US$3,430, while cheddar gained 2.1 percent to US$3,776.

Milk protein concentrate declined 1.9 percent to US$5,880, rennet casein climbed 3.7 percent to US$8,069, and skim milk powder advanced 2.7 percent to US$3,351.

Fonterra’s skim milk powder achieved higher winning prices for similar products on the same delivery than US rival DairyAmerica.

The New Zealand low heat product sold at US$3,430 per metric tonne for March delivery, compared to the US low heat regular product, which was bought at an average US$2,970.

US medium heat regular and medium heat upgraded milk powder sold at US$2,970 and US$3,020 respectively for the March delivery, compared to US$3,410 for the New Zealand medium heat product.

There were 111 winning bidders from 161 participants across 12 rounds at the latest sale. The number of qualified bidders has increased to 533 from 513 at the last sale two weeks ago.


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Sky CEO put on notice by chunky vote against salary share scheme
Unions gearing up to oppose 'market tests' on Fair Pay Agreements
Mandatory farm plans scorned as 'tick box' exercises
Kiwi dollar firms on weak US retail data, capped by rate-cut expectations
17th October 2019 Morning Report
SkyCity hoses down union claims over potential job losses
OPINION: Fair Payment Agreements and 'swallowing vomit' - the lot of the CTU
MARKET CLOSE: NZ shares gain; Restaurant Brands climbs on upbeat outlook
NZ dollar stalls after Bascand's rate cut comments
Bascand says RBNZ will consider changing bank capital proposals

IRG See IRG research reports