Sharechat Logo

Dairy product prices eke out gain; whole milk powder declines

Wednesday 7th June 2017

Text too small?

Dairy product prices inched higher at the Global Dairy Trade auction, rising for the sixth consecutive time.

The GDT price index added 0.6 percent from the previous auction three weeks ago to US$3,395. Some 22,004 tonnes of product was sold, up from 21,236 tonnes at the previous auction.

However, whole milk powder fell, declining 2.9 percent to US$3,143 a tonne.

“Market expectations were for a weaker whole milk powder price, but WMP came back more than expected,” AgriHQ dairy analyst Susan Kilsby said in a note.

The price of an August shipment of regular grade WMP fell 6.9 percent, much more than the 3.1 percent fall that was factored in by the NZX Dairy Derivatives market, according to Kilsby.

“Milk output from New Zealand is expected to lift this season and Fonterra has already made a small upwards revision in the volume of whole milk powder expected to be sold on GDT next season,” Kilsby noted.

At the latest GDT auction, cheddar jumped 14.5 percent to US$4,285 a tonne, while skim milk powder rallied 7.9 percent to US$2,156 a tonne.

Cheddar posted its second highest gain since this commodity started trading on GDT in July 2011, according to Kilsby.

 

Butter milk powder climbed 5.8 percent to US$2,092 a tonne, while rennet casein gained 4.8 percent to US$6,849 a tonne.

Butter rose 3.3 percent to US$5,631 a tonne, while lactose advanced 1 percent to US$971 a tonne.

Bucking the trend, anhydrous milk fat slipped 1.2 percent to US$6,569 a tonne.

The New Zealand dollar last traded at 71.92 US cents at 1.35pm in New York, compared with 71.39 US cents at 5pm in Wellington the previous day.

There were 125 winning bidders out of 183 participating at the 16-round auction. The number of qualified bidders rose to 563, up from 553 at the previous auction.

(BusinessDesk)



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report