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

 

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:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Inflation: CPI Increases 0.3 Percent In June Quarter

The consumers price index (CPI) rose 0.3 percent in the June 2014 quarter, Statistics New Zealand said today. This follows rises of 0.3 percent the March quarter and 0.1 percent in the December 2013 quarter. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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