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Dairy prices fall 0.9 percent, snapping four straight gains, in GDT auction

Wednesday 3rd October 2012

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Dairy prices fell 0.9 percent, snapping a run of four gains, in the latest GlobalDairyTrade auction, led by declines in high-value rennet casein, cheddar and anhydrous milk fat.

The GDT-TWI Price Index fell to an average winning price of US$3,285 per metric tonne. The price for whole milk powder, which accounts for about half of all products sold, rose 2.8 percent to US$3,167 a tonne across all contracts, the highest level since April 3.

The price for rennet casein was the biggest decliner, falling 9.5 percent to US$7,361 a tonne, followed by cheddar which dropped 7.4 percent to US$3,300 a tonne and anhydrous milk fat, down 6.4 percent to US$2,982 a tonne.

The result comes a day after the ANZ Commodity Price Index showed prices for New Zealand-produced raw materials rallied in September in the biggest monthly gain in a year-and-a-half. Dairy prices have been buoyed in recent months as droughts in North America sap the global supply.

In the latest GDT auction the price of skim milk powder fell 0.9 percent to US$3,309 a tonne, milk protein concentrate declined 1.5 percent to US$5,879 a tonne, and lactose sank 6.3 percent to US$2,000 a tonne. Butter milk powder gained 4 percent to US$3,144.

There were 139 winning bidders across 13 rounds, with 164 participating bidders out of 723 qualifying bidders.

Some 59,307 tonnes of product was sold for some US$194.8 million, making it the biggest auction since Fonterra Cooperative Group set up the platform in 2008.

BusinessDesk.co.nz

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


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