INDEPENDENT NEWS

Dairy product prices fall

Published: Wed 19 Sep 2018 10:35 AM
Dairy product prices fall as Fonterra ups whole milk powder supply
By Margreet Dietz
Sept. 19 (BusinessDesk) - Dairy product prices fell at the Global Dairy Trade auction as whole milk powder continued its slide amid increased supply.
The GDT price index fell 1.3 percent from the previous auction two weeks ago. The average price was US$2,934 a tonne, compared with US$2,980 a tonne two weeks ago. Some 39,143 tonnes of product was sold, up from 38,811 tonnes two weeks ago.
Whole milk powder declined 1.8 percent to US$2,768 a tonne.
Fonterra last week lifted its 12-month whole milk powder offer volumes by 20,450 tonnes, with the increases occurring through the October, November and December GDT events, AgriHQ dairy analyst Amy Castleton said in a note.
“Whole milk powder prices were therefore expected to come down due to the supply pressure,” according to Castleton, adding that there was 5 percent more whole milk powder sold at this event than at the September 4 event.
“This includes a lift in volume purchased by North Asian buyers, though most regions which purchased whole milk powder at this event bought more than they did last time,” Castleton said.
At the latest GDT auction, cheddar dropped 3.5 percent to US$3,503 a tonne, while skim milk powder retreated 1.1 percent to US$1,980 a tonne.
“Prices did lift for New Zealand skim milk powder to ship in February and March, indicating buyers don’t need SMP urgently but there is some longer term demand for this commodity,” noted Castleton.
Anhydrous milk fat fell 0.6 percent to US$5,294 a tonne, lactose slipped 0.3 percent to US$910 a tonne, while butter inched 0.1 percent lower to US$4,270 a tonne.
Bucking the trend, rennet casein rose 1.7 percent to US$5,421 a tonne.
For sweet whey powder, neither an index nor price was available. Butter milk powder was not offered at this event.
The New Zealand dollar last traded at 65.82 US cents as of 3.26pm in New York, compared with 65.78 US cents at the previous close in Wellington.
There were 149 winning bidders out of 179 participating at the 15-round auction. The number of registered bidders was 503, down from 541 at the previous auction.
(BusinessDesk)
ends
BusinessDesk
Independent, Trustworthy New Zealand Business News
The Wellington-based BusinessDesk team provides a daily news feed for a serious business audience.
Contact BusinessDesk
Email:

Next in Business, Science, and Tech

2018: New Zealand’s equal-2nd warmest year on record
By: NIWA
GDP growth dampens in the September quarter
By: Statistics New Zealand
Coalition Government delivers boost for low income workers
By: New Zealand Government
IKEA to open in New Zealand
By: IKEA
2018 another hot year in NZ - Expert Reaction
By: Science Media Centre
Science Deadline: another hot year, fibre's benefits, 1080
By: Science Media Centre
2018 was NZ's warmest year on record - climate scientist
By: RNZ
Honours recognise work that addresses climate change
By: New Zealand Government
NZ economic growth softer than expected in Sept quarter
By: BusinessDesk
NZ economy slows, growth per person stalls
By: New Zealand National Party
Economic slowdown must prompt change in direction
By: ACT New Zealand
Taxpayers’ Union responds to economic growth slowdown
By: New Zealand Taxpayers' Union
Government outlines planned hikes in minimum wage
By: BusinessDesk
Wage rise welcome for some, worry for others
By: New Zealand National Party
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media