Dairy product prices climb for third straight auction amid supply concern
By Margreet Dietz
Feb. 7 (BusinessDesk) - Dairy product prices rose at the Global Dairy Trade auction, rising for the third straight time, as buyers stocked up in anticipation of easing output.
The GDT price index climbed 5.9 percent from the previous auction three weeks ago. The average price was US$3,553 a tonne. Some 22,197 tonnes of product was sold, down from 23,319 tonnes three weeks ago.
Whole milk powder rallied 7.6 percent to US$3,226 a tonne.
“Falling milk production in New Zealand—and revisions to offer volumes—continue to support prices on GDT,” Amy Castleton, AgriHQ dairy analyst, said in a note. “There were no revisions to whole milk powder volumes ahead of this latest event, but buyers do seem to be more nervous that they will not be able to fulfil their requirements if New Zealand milk production continues to fall.”
At the latest GDT auction, butter milk powder jumped 8.4 percent to US$2,039 a tonne, while butter rose 7.9 percent to US$5,277 a tonne
Skim milk powder added 7.2 percent to US$1,932 a tonne, while cheddar gained 7.2 percent to US$3,739 a tonne.
Rennet casein increased 5 percent to US$4,943 a tonne, while anhydrous milk fat rose 0.5 percent to US$6,581 a tonne.
“Volumes of skim milk powder and butter had been pulled back ahead of this event,” Castleton noted. “Anhydrous milk fat volumes had been lifted, but there is strong demand for this commodity, which is keeping prices high.”
No prices were available for lactose.
The New Zealand dollar last traded at 73.08 US cents as of 12.14pm in New York, compared with 72.65 US cents at the previous close in Wellington.
There were 126 winning bidders out of 188 participating at the 15-round auction. The number of qualified bidders rose to 524, up from 517 at the previous auction.