Sharechat Logo

GlobalDairyTrade prices may drop for third straight auction

Tuesday 21st March 2017

Text too small?

Prices on the GlobalDairyTrade platform may drop for a third straight auction tonight as supply outstrips demand.

Futures trading on the NZX this morning indicated whole milk powder prices will slip 3 percent, skim milk powder will drop 6 percent and milkfat products such as butter and anhydrous milk fat will decline between 2 and 3 percent, according to AgriHQ senior dairy analyst Susan Kilsby.

Fonterra Cooperative Group, the world's largest dairy exporter, earlier this month announced it would lift the volume of whole milk powder and skim milk powder offered in coming auctions on the GDT platform by about 25,000 tonnes as more favourable weather meant it collected more milk than expected from its farmer suppliers. 

"We did see some gain in whole milk powder prices last week but since Friday the future market has eased back," Kilsby said. "There is nearly 10 percent more whole milk powder available at this auction than the previous event so it will be a challenge for the market to absorb this extra volume without some slippage in price."

Dairy products are New Zealand's largest commodity export, worth $11.25 billion in the year ended Jan. 31, according to the latest trade data from Statistics New Zealand.

 

BusinessDesk.co.nz



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.
Bookmark and Share   Printable version
Related News

Salt Funds urges NPT shareholders to reject Kiwi Property offer as
Tower board mulls takeovers, capital raising as performance in line with expectations in 2017
Tower board mulls takeovers, capital raising as performance in line with expectations in 2017
CORRECT: NPT shareholders to vote on Kiwi Property offer, Augusta board spill
Trans-Tasman telco cable completed, boosting NZ's international bandwidth
Hallenstein 1H profit rises 35%, early winter sales 'encouraging'
NPT shareholders to vote on Kiwi Property offer, Augusta board spill
NZ dollar touches week-high vs British pound, euro as Brexit formally triggered
While you were sleeping: Rosengren sees four hikes
MARKET CLOSE: NZ shares gain; A2, Fletcher, TeamTalk rise, Metro Glass, Infratil fall

IRG See IRG research reports