Wednesday 19th April 2017
|Text too small?|
Dairy product prices rose at the Global Dairy Trade auction, rising for the third time in a row and offering a boost to sentiment.
The GDT price index gained 3.1 percent from the previous auction two weeks ago to US$3,139. Some 22,927 tonnes of product was sold, up from 22,642 at the previous auction.
Whole milk powder (WMP) climbed 3.5 percent to US$2,998 a tonne.
A large volume of instant WMP sold at a lower price than the regular grade product, AgriHQ dairy analyst Susan Kilsby said in a note.
“It was unusual to see regular grade WMP selling at a premium to the higher specification product but we have seen a lot of strength in the futures market recently and it is the regular grade product this market settles against,” according to Kilsby.
Skim milk powder (SMP) jumped 7.1 percent to US$2,044 a tonne.
"The GDT prices indicate there are buyers that are prepared to pay a premium to source SMP produced in New Zealand," Kilsby noted. "Elsewhere in the world there is a glut of SMP but here we are successfully moving product and attaining good prices."
Cheddar rallied 6 percent to US$3,462 a tonne, butter increased 2.9 percent to US$4,892 a tonne, while lactose added 1.2 percent to US$935 a tonne.
Meanwhile, rennet casein dropped 3.8 percent to US$6,020 a tonne, while anhydrous milk fat slipped 0.5 percent to US$5,930 a tonne.
Butter milk powder sold at US$1,720 a tonne.
The New Zealand dollar last traded at 70.25 US cents at 1.26pm in New York, compared with 70.08 US cents at 5pm in Wellington the previous day.
There were 130 winning bidders out of 173 participating at the 14-round auction. The number of qualified bidders rose to 541, up from 537 at the previous auction.
No comments yet
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
Air NZ to amend booking engine after lawyer’s complaint
Ross McEwan to take helm at NAB
KPMG says bank capital proposals will wreck havoc on dairy farmers
Mild weather saps Vector's June-qtr volumes