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


Dairy product prices slip for the first time this year

Dairy product prices slip for the first time this year

By Margreet Dietz

Feb. 21 (BusinessDesk) - Dairy product prices declined at the Global Dairy Trade auction, sliding for the first time this year after three consecutive increases.

The GDT price index eased 0.5 percent from the previous auction two weeks ago. The average price was US$3,623 a tonne. Some 20,256 tonnes of product was sold, down from 22,197 tonnes two weeks ago.

Whole milk powder eked out a 0.3 percent gain to US$3,246 a tonne.

“Even though the whole milk powder result was not strong this time around, the average WMP price is 8 percent higher than it was a month ago,” Amy Castleton, AgriHQ dairy analyst, said in a note.

At the latest GDT auction, skim milk powder fell 3 percent to US$1,832 a tonne, while anhydrous milk fat declined 1.9 percent to US$6,458 a tonne.

“Skim milk powder prices remain under pressure from high stock levels in both Europe and the US and thus strong competition from these regions,” according to Castleton.

Cheddar slid 1.3 percent to US$3,686 a tonne.

Meanwhile, rennet casein gained 0.7 percent to US$4,980 a tonne, while butter rose 1.1 percent to US$5,334 a tonne.

“Demand for the commodity has been keeping anhydrous milk fat prices high, but AMF has been overpriced relative to butter on a milkfat content basis for quite some time,” according to Castleton. “The fall in AMF prices and lift in butter prices now has the stream returns for the two commodities relatively aligned.”

No prices were available for lactose.

Butter milk powder was not offered at this event.

The New Zealand dollar last traded at 73.60 US cents as of 12.13pm in New York, compared with 73.72 US cents at the previous close in Wellington.

There were 114 winning bidders out of 152 participating at the 14-round auction. The number of registered bidders rose to 527, up from 524 at the previous auction.



© Scoop Media

Business Headlines | Sci-Tech Headlines


EU Wine Exports: Peter Yealands Fined For "Unprecedented Offending"

Yealands Estate Wines has pleaded guilty to “unprecedented offending” under the Wine Act 2003 and has copped a $400,000 fine. More>>


Discussion Paper: Govt To Act On Unfair Commercial Practices

“I’ve heard about traders who have used aggressive tactics to sell products to vulnerable consumers, and businesses that were powerless to stop suppliers varying the terms of their contract, including price.” More>>


'Considering Options' On Tip Top Ownership: Fonterra Drops Forecast Milk Price

Fonterra Co-operative Group Limited today revised its 2018/19 forecast Farmgate Milk Price range from $6.25-$6.50 per kgMS to $6.00-$6.30 per kgMS and shared an update on its first quarter business performance. More>>


Science: Legendary Telescope Being Brought Back To Life

One of the world’s most famous Victorian telescopes will be restored and available for public viewing in Takapō after spending five decades in storage... The Brashear Telescope was used in the late 1800s by Percival Lowell for his studies of Mars. More>>