Dairy product prices rebound from 3-year low in Fonterra’s GDT auction
Prices of dairy products rebounded from a three-year low as buyers returned to the market, posting their biggest gain in almost two years, led by skim milk powder and anhydrous milk fat.
The GDT-TWI Price Index rose 13.5 percent compared to the last sale in mid-May. The average winning price rose to US$2,899 a metric tonne, the highest since April. The price of skim milk powder jumped 21.3 percent to US$3,011 a tonne. Whole milk powder rose 8.5 percent to US$2,763 a tonne.
The average price at the sales rose for only the third time this year and weakening prices prompted Fonterra last month to cut its forecast 2012 milk payout and flag lower payments in 2013. The decline has mirrored a broader trend in commodities amid doubts about global demand.
The Thomson Reuters/Jefferies CRB Commodity Index edged up about 0.1 percent overnight from the lowest in almost two years. Anhydrous milk fat rose 24.4 percent to US$3,096 a tonne in the latest auction.
Cheddar climbed 9.4 percent to US$3,189 a tonne. Butter milk powder sold at an average US$2,456 a tonne while lactose declined 1.3 percent to US$1,992 a tonne. Milk protein concentrate rose 10.9 percent to US$4,339 a tonne.
Rennet casein rose 19.6 percent to US$6,890 a tonne. There were 106 winning bidders over 16 rounds, the longest auction since November last year. There were 170 participating bidders, the highest since the Dec. 6, 2011, sale. The number of qualified bidders rose to 649 from 635.
Comments from our readers
No comments yet
Add your comment:
NZ inflation expectations fall to lowest since June 1999 as growth uptick seen
F and P Healthcare shares rise to two-year high as First NZ raises rating on better outlook
Deep-sea phosphate miner CRP on track for final investment decision this year
Renaissance posts first-half loss on shrinking margins from Apple products, impairment
Central Plains Water shareholders committed to capital raising up to $56 mln
NZ exodus across the Tasman slows to smallest monthly pace in almost three years
NZOG chair Griffiths backs director liability over health and safety failures
Sealegs ekes out full-year profit, raising prices as volume of boats sold slips
NZ dollar gains on concern Bernanke may be cautious on US growth
While you were sleeping Hesitancy after new records