Dairy product prices rise 2% in first GDT auction of 2013

Dairy product prices rise 2% in first GDT auction of 2013

By Paul McBeth

Jan. 3 (BusinessDesk) - The price of dairy products rose 2 percent in the first GlobalDairyTrade auction of 2013, recovering losses through the tail-end of last year.

The average winning trade-weighted price increased to US$3,357 per metric tonne from US$3,311/tonne at the Dec. 19 sale. The gains were led by a 4.7 percent boost in skim milk prices to US$3,572 per tonne. Prices for whole milk powder, which typically accounts for more than half the product sold, rose 1.6 percent to US$3,199 per tonne.

The total volume sold was 45,252 tonnes for a total of US$151.9 million across 13 rounds of bidding. That was down from 47,195 tonnes at the last auction.

Last month Fonterra Cooperative Group, which owns the GDT platform, raised its forecast farm-gate payout and chief executive Theo Spierings said he expected dairy prices to rise in the first half of this year due to rising feed prices from unfavourable climatic conditions in the US, South America and Europe.

Anhydrous milk fat prices fell 0.2 percent to US$3,169 per tonne at today's auction, rennet casein prices declined 0.8 percent to US$8,401 per tonne, and cheddar dropped 1.9 percent to US$3,458 a tonne.

The average price of butter milk powder advanced 1.1 percent to US$3,640 a tonne and milk protein concentrate gained 1.4 percent to US$6,122 per tonne. Lactose products haven't been sold at the auction since the Nov. 6 event.

There were 122 winning bidders from 164 participating bidders out of a pool of 743 qualifying bidders.

(BusinessDesk)

© Scoop Media