Fonterra dairy product prices fall 5.1% to lowest since December in latest auction

July 20 (BusinessDesk) – Average prices of dairy products fell to their lowest level since early December in Fonterra Cooperative Group’s latest online auction, adding to evidence the steam in coming out of global commodity prices.

The GDT-TWI Price Index fell 5.1% to US$3,796 a metric tonne, according to results posted on the globalDairyTrade auction website. That follows a 6.7% decline in the last sale two weeks ago.

Prices fell for a third straight sale though they’re still well above the 10-year average for the Real GDT-TWI. Global commodity prices have eased amid signs economic growth isn’t as sturdy as expected. The Thomson Reuters/Jefferies CRB Commodity Index of 19 commodities has declined about 7% from the 2 ½-year high it reached in late April.

Skim milk powder fell 5.2% to US$3,488 a tonne and whole milk powder dropped 4% to US$3,475 a tonne. Anhydrous milk fat fell by an average 12.5% to US$4,614 a tonne, milk protein concentrate dropped 10.2% to US$5,525 a tonne and rennet casein fell 1.4% to US$9,992 a tonne. Butter milk powder, which hasn’t traded in recent auctions, rose 0.3% to US$3,345 a tonne.

There were 97 winning bidders from 122 participants over eight rounds. The platform has 348 qualified bidders, up from 347 in the last auction.

(BusinessDesk)

BUDGET 2012:
Parliament Debate Live - Video Of Budget 2011
Keith Ng Interactive Graphic: How the Budget Breaks Down
BUDGET 2012 - FULL COVERAGE: Reports / Analysis - Press Kit - Reaction (from everybody) - Previews (from everybody) - Pre-Budget Announcements

Gordon Campbell: On the Budget’s Spreadsheet Victories

It wasn’t as if expectations were sky high, exactly. Chances are, it was always more likely that we’d be seeing Bigfoot rampage through the Beehive lock-up than catch a glimpse of a credible growth agenda from this government. More >>

Sludge Budget Report - Short The Dollar! MEMO: To international bankers FROM: C.D. Sludge Please short the dollar! It'll be good for both you and us. And you know you want to. Greexit, Eurogeddon... watch out... flight to quality and all that. Follow your instincts. The NZ Debt Management Office has been so surprised at the unprecedentedly low interest rates that it can borrow at that it has already entirely pre-funded the 2013 fiscal deficit - all $8 billion of it! More >>

Pattrick Smellie Comment: Doddling along the best we can hope forCriticising Budgets for lacking vision or imagination is like shooting fish in a barrel, but even so, this year's Budget again feels like a missed opportunity. Perhaps it's the intrusion of real world needs that means the government couldn't make better political use of the $558.8 million it expects to gather in its first partial asset sale. More >>