Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Dairy product prices record biggest drop since June 2013

Dairy product prices record biggest drop since June 2013, paced by whole, skim milk powder

March 5 (BusinessDesk) - Dairy product prices recorded their biggest decline since June last year in the latest GlobalDairyTrade auction, paced by whole and skim milk powder, suggesting New Zealand commodity prices may ease from record highs.

The GDT Price Index fell 4 percent from the last sale two weeks ago. The average winning price was US$4,794 a tonne from US$5,016 a tonne at the last auction. Some 42,037 tonnes of product was sold, up from an eight-month low 34,568 tonnes in the previous sale.

Whole milk powder, the biggest product sold by volume, fell 5.7 percent to US$4,703 a tonne and skim milk powder declined 3.9 percent to US$4,658 a tonne. Butter milk powder fell 5.8 percent to US$4,792 a tonne.

The sale follows the release yesterday of the ANZ Commodity Price Index for February, which charted a new record high, with gains for cheese, butter and casein, and comes after government figures showed the New Zealand's terms of trade gained 2.3 percent in the fourth quarter, to the highest level since December 1973, driven by dairy products.

“Fonterra had raised the volumes being offered for all the main products, apart from anhydrous milkfat,” Con Williams, agri economist at ANZ Bank New Zealand, said in a note. “The seasonal lift in supply of dairy products on GlobalDairyTrade proved difficult for the market to swallow, signalling a modest price correction could be on the cards.

“As long as supply continues to build, a moderation in prices is expected into 2014/15.”

Milk protein concentrate fell 3.3 percent to US$8,524 a tonne and butter rose 3.9 percent to US$4,746 a tonne. Cheddar rose 0.7 percent to US$4,837 a tonne. Rennet casein climbed 2.9 percent to US$11,791 a tonne and anhydrous milk fat fell 3.5 percent to US$5,126 a tonne.

Lactose wasn't offered.

There were 139 winning bidders at the auction over 11 rounds. The total number of qualified bidders rose to 796 from 793.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news