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

 


Dairy product prices drop as March volumes rise

Dairy product prices drop to nine-month low as March volumes jump

March 19 (BusinessDesk) - Dairy product prices fell to the lowest trade-weighted price in nine months, led by anhydrous milk fat and rennet casein, in a third decline on Fonterra Cooperative Group’s GlobalDairyTrade auction site.

The GDT price index dropped 5.2 percent to US$4,563 per tonne from the last sale two weeks ago, the lowest price since June last year. Some 39,008 tonnes were sold at today’s auction, taking the total for March to 80,094 tonnes, double the 37,916 tonnes sold in March last year.

“The market seems to be struggling to digest the recent lift in near-term volumes offered (most of which is whole milk powder),” Con Williams, ANZ Bank New Zealand rural economist, said in a note. “The recent broadening in dry weather conditions (despite recent rain) suggests there won’t be a long tail to the New Zealand season despite the current record milk price for 2013/14 and ability to feed supplement.”

Rennet casein prices fell 11 percent to US$10,533 a tonne and anhydrous milk fat dropped by the same amount to US$4,578 a tonne. Whole milk powder, the biggest product sold by volume, fell 5.8 percent to US$4,439, its biggest decline since June last year.

The auction comes ahead of government figures which are expected to show New Zealand’s annual current account deficit narrowed to $7.41 billion in the three months ended Dec. 31 from $8.77 billion in the September quarter. The country’s terms of trade are at a 40-year high and have helped underpin the local export sector, with massive Chinese demand for dairy products.

Skim milk powder prices fell 1.7 percent to US$4,584 a tonne, the first time it’s been more expensive than whole milk powder. Butter prices fell 4.4 percent to US$4,534 a tonne.

Butter milk powder prices were the biggest gainer, up 4.6 percent to US$5,253 from the last auction, followed by a 3.7 percent gain in milk protein concentrate to US$8,837 a tonne. Lactose wasn’t offered at the event.

There were 142 winning bidders of 187 participating bidders at the auction over 10 rounds. The number of qualified bidders fell to 747 from 796 at the last auction.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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