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

 

Dairy product prices fall, halting longest gaining streak

By Margreet Dietz

May 22 (BusinessDesk) - Dairy product prices fell at the Global Dairy Trade auction, ending a record string of 11 consecutive gains, as whole milk powder declined for the fourth straight time.

The GDT price index fell 1.2 percent from the previous auction two weeks ago. The average price was US$3,414 a tonne, compared with US$3,490 a tonne two weeks ago. Some 15,510 tonnes of product was sold, up from 15,375 tonnes two weeks ago.

Whole milk powder dropped 2.1 percent to US$3,180 a tonne.

“This is the fourth consecutive decrease in the whole milk powder price index, with price levels decreasing across all contract periods, particularly for June and July deliveries,” NZX dairy analyst Robert Gibson said in a note.

“Although offer volumes leading into the event were unchanged on the previous event, prices likely reflect buyers having adequate short term cover, with milk supplies coming online in the Northern Hemisphere,” according to Gibson.

At the latest GDT auction, butter retreated 3.2 percent to US$5,297 a tonne, while anhydrous milk fat slid 1.4 percent to US$6,140 a tonne.

Meanwhile, cheddar soared 15.2 percent to US$4,851 a tonne, while rennet casein jumped 5.1 percent to US$6,916 a tonne.

Lactose rose 0.6 percent to US$893 a tonne, while skim milk powder gained 0.5 percent to US$2,529 a tonne.

The increase in skim milk powder prices “was driven by demand for contracts for August to November, likely in response to markets anticipating New Zealand spring milk production,” Gibson noted, adding that the increase in the overall average price occurred despite offer volumes being up on 17 percent on the previous event.



Butter milk powder was not offered at this event.

For sweet whey powder, no product was offered or sold, or no price was published for the last event, or on both of the two previous events.

The New Zealand dollar last traded at 65.05 US cents as of 3.24pm in New York, compared with 65.34 US cents at the previous close in Wellington.

There were 100 winning bidders out of 149 participating at the 20-round auction. The number of registered bidders was 524, down from 529 at the previous auction.


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Oil Exploration: Chevron, Equinor Depart NZ

Chevron and Norwegian oil giant Equinor have opted to abandon their joint exploration efforts off the east coast of the North Island... Chevron said the decision not to proceed with the next five-year stage of their work programmes was based on the firms’ broader portfolio considerations and not “policy or regulatory concerns.” More>>

ALSO:

Reference Group Proposal: Motorists, MTI Support Ban On Less Safe Car Imports

A proposal to ban some used car models from being imported into New Zealand is being welcomed by the Motor Industry Association, which says Japan's scraps are being sent here for waste disposal. More>>

ALSO:

Gordon Campbell: On Asking The Banks To Be Nicer To Farmers

Few would begrudge the idea that banks should be made to act more humanely – given the obscene profits that the Aussie banks are extracting annually from New Zealand, they can surely afford to cut some slack. More>>

ALSO:

Wider Net Ban, Other Threats: Plan To Expand Protection For Maui And Hector’s Dolphins

The Government is taking action to expand and strengthen the protection for Māui and Hector’s dolphins with an updated plan to deal with threats to these native marine mammals. More>>

ALSO: