-->
Sharechat Logo

Dairy product prices seen steady-to-easing at GDT auction

Tuesday 19th June 2018

Text too small?

Dairy product prices are expected to slip at the Global Dairy Trade auction overnight amid a pick-up in supply, even as global trade tensions appear to benefit demand for New Zealand dairy products. 

Indeed, favourable weather helped New Zealand milk processors collect record levels of milk in the last two months of the 2017/18 season, according to Dairy Companies Association of New Zealand data.

ANZ Bank New Zealand research analysts predict “further price slippage” at the June 19 GDT auction, though “only toward the bottom of recent ranges.”

"Higher end of season inventories and increased GDT volumes both appear to be weighing a little," ANZ economists said in a note on Monday, adding that whole milk powder prices have pulled back to the bottom of the US$3,200-$3,300 per tonne range. 

At the most recent event on June 5, the GDT price index slid for the sixth time in eight auctions, with whole milk powder falling amid increased volume on offer and higher milk collections by Fonterra Cooperative Group. 

“It has generally been a guess in recent times but given most whole milk powder futures sit below their last GDT equivalents — our pick is flat to down,” Nigel Brunel, director, at OM Financial in Auckland, wrote in a note on Tuesday. 

(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:

MARKET CLOSE: NZ shares gain; a2 jumps to 12-month high as earnings outperform
NZ dollar drifts lower following early boost from rising dairy prices
Meridian positions for next generation development
Kiwibank lifts first-half net profit 47.6% amid rekindled growth
John Fellet: Came to Sky TV for 18 months, stayed 28 years
Marsden Maritime net profit down on lower cargo through Northport
Countdown supermarkets 1H earnings dip as digital investment continues
Fletcher open to re-entering high rise construction market
Power price spike put margin squeeze on NZ producers in Dec quarter, stats show
Tilt Renewables to raise A$260m of new equity

IRG See IRG research reports