Dairy product prices slip to two-year low
Aug 20 (BusinessDesk) - Dairy product prices slipped to the lowest level in two years in the latest GlobalDairyTrade auction, as lower prices for skim milk powder and cheddar outweighed increases for butter and anhydrous milk fat.
Commodities, dominated by dairy products, are central to New Zealand's export returns and help drive the economy. Yesterday the Treasury cut its short-term forecasts for economic growth and tax revenue, citing weaker prices for export commodities.
Still, it expects prices to stabilise near current levels, saying factors driving them lower are short term, not structural.
The GDT price index slipped 0.6 percent to US$3,000, down from US$3,025 a tonne two weeks ago. Some 46,387 tonnes of product was sold, down from 48,380 tonnes two weeks ago.
In the latest GDT auction, skim milk powder plunged 12 percent to US2,874 a tonne, while cheddar slumped 7.9 percent to US$3,453 a tonne.
Butter milk powder fell 2.5 percent to US$3,886 a tonne, while rennet casein slipped 0.8 percent to US$9,601 a tonne.
Whole milk powder rose 3.4 percent to US$2,804 a tonne, while anhydrous milk fat gained 3.6 percent to US$3,566. Butter rose 4.9 percent to US$2,940 a tonne.
Neither lactose nor sweet whey powder were offered at the event.
The New Zealand dollar was trading at 84.43 US cents before the release, and recently traded at 84.41 cents.
There were 141 winning bidders out of 181 participating bidders at the 13-round auction. The number of qualified bidders fell to 650 from 668 at the last auction.