Sharechat Logo

Dairy product prices fall to lowest since October 2012

Wednesday 6th August 2014

Text too small?

Dairy product prices slumped to the lowest level since October 2012 in the latest GlobalDairyTrade auction, paced by whole milk powder and cheddar.

Since the last auction three weeks ago, Fonterra Cooperative Group has slashed its forecast 2015 farmgate milk payout to $6 per kilogram of milk solids from $7/kgMS, citing strong global production, a build-up of inventory in China and falling demand in emerging markets. The ANZ Commodity Price Index fell for a fifth month in July, led by a 12 percent drop in whole milk powder.

The GDT price index dropped 8.4 percent to US$3,025 a tonne, down from US$3,309 a tonne three weeks ago. Some 48,380 tonnes of product was sold, up from 36,656 tonnes three weeks ago.

In the latest GDT auction, whole milk powder shed 11.5 percent to US$2,725 a tonne, while cheddar dropped 10.2 percent to US$3,742 a tonne.

Butter milk powder sank 10.1 percent to US$3,852 a tonne, and butter declined 9.6 percent to US$2,800 a tonne.

Skim milk powder fell 6.5 percent to US$3,264 a tonne, while rennet casein slipped 0.7 percent to US$9,701 a tonne.

Anhydrous milk fat jumped 6.0 percent to US$3,457.

Neither lactose nor milk protein concentrate were offered at the event.

The New Zealand dollar was trading at 84.76 US cents before the release. It dropped as low as 84.52 cents and was recently trading at 84.59 cents.

There were 153 winning bidders out of 178 participating bidders at the 11-round auction. The number of qualified bidders rose to 668 from 663 at the last auction.

BusinessDesk.co.nz

  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:

Plexure sees revenue growth from White Castle deal
22nd July 2019 Morning Report
NZ dollar treading water as markets focus on Iran
MARKET CLOSE: NZ shares extend gain as passive funds bolster prices; Tourism Holdings climbs
NZ dollar headed for 1.3% weekly gain on expectations of a Fed rate cut
RBNZ knock-back gives Resolution chance to low-ball AMP - Jarden
Rail hubs may not boost Napier Port log trade
O'Connor looks to overhaul Biosecurity Act, improve animal tracing
Denton Morrell undefended at liquidation hearing
Contact steam to heat Norske Skog pellet business secured

IRG See IRG research reports