Dairy product prices rise 0.7 percent in GDT auction
Dairy product prices rise 0.7 percent in GDT auction, whole milk powder falls
Nov. 21 (BusinessDesk) – Prices of dairy products rose in Fonterra’s latest GlobalDairyTrade auction, the third straight gain on the sales platform, led by cheddar and anhydrous milk fat while milk powder prices fell.
The GDT-TWI Price Index rose 0.7 percent compared to the last sale two weeks ago. The average winning price gained to US$3,348 a metric tonne. Whole milk powder, the biggest product by volume, fell 1.9 percent to US$3,276 a tonne and skim milk powder dropped 1.7 percent to US$3,402 a tonne.
Fonterra’s brokers may be cheered as the gains come as it enters the bookbuild for the $525 million Fonterra Shareholders' Fund, which gives outside investors access to the cooperative’s dividend payments. The auction comes as the Thomson Reuters/Jefferies CRB Commodity Index of 19 commonly traded commodities is at its highest level in a month, having gained 1.6 percent overnight.
The total volume sold fell to 48,335 tonnes from 54,106 tonnes two weeks ago.
Anhydrous milk fat rose 1.2 percent to US$3,066 a tonne and cheddar jumped 12.4 percent to US$3,436 a tonne. Only one contract date traded for butter milk powder, due Feb. 13, at a price of US$3.615. Lactose wasn’t offered for sale.
Milk protein concentrate fell 1.8 percent to US$6,040 a tonne and rennet casein was unchanged at US$7,916 a tonne.
There were 147 winning bidders over 11 rounds. There were 186 participating bidders out of a total number of qualified bidders of 726.