CORRECT: Dairy product prices rise from two-year low

Wednesday 17th September 2014

Dairy product prices rose in the latest GlobalDairyTrade auction, inching higher from the lowest level since July 2012, as declines in butter milk powder and cheddar were offset by gains in rennet casein and skim milk powder.

The GDT average winning price crept higher to US$2,795, up from US$2,787 two weeks ago. Some 50,801 tonnes of product was sold, down from 57,010 tonnes of product two weeks ago.

In the latest GDT auction, rennet casein rose 1.3 percent to US$8,343 a tonne, while skim milk powder gained 0.9 percent US$2,619 a tonne. Whole milk powder added 0.6 percent to US$2,692 a tonne.

Butter milk powder dropped 6.9 percent to US$3,140 a tonne, while cheddar declined 6.5 percent to US$3,077 a tonne.

Butter fell 2.5 percent to US2,698 a tonne, while anhydrous milk fat gave up 2.2 percent to US$3,264 a tonne.

Sweet whey powder was offered for the first time, selling at an average price of US$1,295 per tonne.

Lactose wasn't offered at the event.

The New Zealand dollar traded at 81.52 US cents before the release of the auction results, before climbing as high as 82.30 after the release. The kiwi recently traded at 82.09 US cents.

There were 152 winning bidders out of 191 participating bidders at the 11-round auction. The number of qualified bidders fell to 642, down from 660 at the last auction.

BusinessDesk.co.nz

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