Wednesday 21st February 2018
|Text too small?|
Dairy product prices declined at the Global Dairy Trade auction, sliding for the first time this year after three consecutive increases.
The GDT price index eased 0.5 percent from the previous auction two weeks ago. The average price was US$3,623 a tonne. Some 20,256 tonnes of product was sold, down from 22,197 tonnes two weeks ago.
Whole milk powder eked out a 0.3 percent gain to US$3,246 a tonne.
“Even though the whole milk powder result was not strong this time around, the average WMP price is 8 percent higher than it was a month ago,” Amy Castleton, AgriHQ dairy analyst, said in a note.
At the latest GDT auction, skim milk powder fell 3 percent to US$1,832 a tonne, while anhydrous milk fat declined 1.9 percent to US$6,458 a tonne.
“Skim milk powder prices remain under pressure from high stock levels in both Europe and the US and thus strong competition from these regions,” according to Castleton.
Cheddar slid 1.3 percent to US$3,686 a tonne.
Meanwhile, rennet casein gained 0.7 percent to US$4,980 a tonne, while butter rose 1.1 percent to US$5,334 a tonne.
“Demand for the commodity has been keeping anhydrous milk fat prices high, but AMF has been overpriced relative to butter on a milkfat content basis for quite some time,” according to Castleton. “The fall in AMF prices and lift in butter prices now has the stream returns for the two commodities relatively aligned.”
No prices were available for lactose.
Butter milk powder was not offered at this event.
The New Zealand dollar last traded at 73.60 US cents as of 12.13pm in New York, compared with 73.72 US cents at the previous close in Wellington.
There were 114 winning bidders out of 152 participating at the 14-round auction. The number of registered bidders rose to 527, up from 524 at the previous auction.
No comments yet
NZ dollar falls with Aussie after Westpac's RBA rate cut call
Intuit juggernaut grows QuickBooks subscribers but momentum slows
Reaction to Budget rules relaxation shows balance 'about right', says Ardern
Augusta lifts net profit six fold as investors flock into new funds
Annual exports to China top $15 billion for first time
Gentrack posts $8.7M loss on CA Plus write-down
Westpac says RBNZ capital proposals would add $6,000 p.a. to an Auckland mortgage
Cavalier says market conditions still challenging
Ryman hikes dividend as annual earnings grow on wider development margin
24th May 2019 Morning Report