Fonterra dairy product prices fall 1.3%, tracking global commodities
Aug. 3 (BusinessDesk) – Average prices of dairy products fell for the fourth sale in a row in Fonterra Cooperative Group’s latest online auction, tracking a broader decline in global commodity prices.
The GDT-TWI Price Index fell 1.3% to US$3,716 a metric tonne, according to results posted on the globalDairyTrade auction website. That’s the lowest since the December sale.
Prices at the auction are weakening as Fonterra faces increased scrutiny of its charging in the domestic market, with a team of government official reviewing the Raw Milk Regulations. The Commerce Commission yesterday passed on seeking to have local prices regulated, pending the outcome of the review.
The Thomson Reuters/Jefferies CRB Commodity Index of 19 commodities is at its lowest in almost a month.
Skim milk powder fell 1.4% to US$3,479 a tonne and whole milk powder dropped 0.3% to US$3,474 a tonne. Anhydrous milk fat fell by an average 7.2% to US$4,297 a tonne and milk protein concentrate rose 1.7% to US$5,632 a tonne.
Rennet casein fell 4.6% to US$9,498 a tonne. Butter milk powder rose 3.3% to US$3,319 a tonne.
There were 116 winning bidders from 152 participants over 10 rounds. The platform has 355 qualified bidders, up from 348 in the last auction.