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

 

Dairy product prices fall 2.4% in GDT auction

Dairy product prices fall 2.4% in GDT auction, little sign of taint disruption

Aug. 7 (BusinessDesk) - Prices of dairy products fell in the latest GlobalDairyTrade auction, while the volume sold jumped to a record, suggesting little if any reaction to Fonterra Cooperative Group’s whey protein contamination scare.

The GDT Price Index, previously known as the GDT-TWI Price Index, fell 2.4 percent compared to the last sale two weeks ago. The average winning price was US$4,847 a tonne, compared to US$4,828 a tonne in the previous sale, when prices had the biggest increase in four months.

The total volume of dairy products sold at the latest auction jumped to 60,587 tonnes, the biggest on record for the GDT site, from 37,948 tonnes two weeks ago. The overnight sale was seen as a key measure of market sentiment in the wake of news that Fonterra had found the bacteria Clostridium, which can cause botulism, in three batches of whey protein concentrate. No tainted product found its way into the GDT sales.

“Prior to the contamination scare we had expected prices to fall over the second half of 2013,” Westpac Banking Corp economist Nathan Penny said in a preview to the sale. “Trade-weighted prices rose unexpectedly by around 5% in the previous auction - we were already expecting payback before the contamination scare.”

The New Zealand dollar edged higher after the sale results were published, to trade recently at 79.06 US cents from 78.66 cents immediately before. The trade-weighted index was last at 74.74, up from about 74.50. The kiwi had initially dropped on Monday following the weekend’s news from Fonterra.

The average winning price of skim milk powder fell 3 percent to US$4,451 a tonne. Fonterra competes with Amul, Arla and Dairy America for sales of SMP. In the latest sale, no Fonterra Contract 1 SMP, for delivery in September, was sold, while Dairy America made Contract 1 sales across all four variants of the product it offered.

Whole milk powder, the biggest product by volume, fell 1.6 percent to US$5,021 a tonne, having jumped 7.7 percent in the last auction two weeks ago.

The price of anhydrous milk fat fell 4.9 percent to US$4,612 a tonne and butter milk powder gained 0.4 percent to US$4,641 a tonne, with again no September contracts sold. Butter dropped 5.5 percent to US$3,499 a tonne.

Cheddar fell 4.4 percent to US$4,335 a tonne. Lactose didn’t trade and milk protein concentrate traded at US$7,751 a tonne. Rennet casein rose 1.2 percent to $9,904 a tonne.

There were 132 winning bidders over 10 rounds. There were 199 participating bidders out of a total number of qualified bidders of 855.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>

ALSO:

Grey Power: Is Disappointed To Learn Of More Bank Closures

Many older people are being left without essential services because of cost cutting and the march of modern technology. It is now expected that most banking transactions can occur via the internet or telephone. Jan Pentecost, President of the Grey Power ... More>>

ALSO:

Economy: Supply Chain On Brink Of Overload Says National Road Carriers

The New Zealand supply chain is on the brink of overload and it looks like the upcoming peak imports season may push it over the edge says National Road Carriers Association (NRC) CEO David Aitken. “Worldwide supply chains are in disarray,” says Mr Aitken. ... More>>

Stats NZ: Annual Goods Trade Surplus At 28-Year High

New Zealand’s annual goods trade surplus reached a 28-year high of $2.2 billion as imports tumbled in the year ended October 2020, Stats NZ said today. “This is the largest annual surplus since the July 1992 year, driven mainly by much lower ... More>>

ComCom: How Real Is That Bargain?

The Commerce Commission urges retailers and consumers to think hard about the bargains being offered as ‘Black Friday’ and Christmas draw near. Black Friday has now overtaken Boxing Day in terms of retail spending, according to data from electronic ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>

ALSO:


Forest & Bird: Kākāpō Wins Bird Of The Year 2020

The nation has voted and Aotearoa New Zealand has a new Bird of the Year. New Zealand’s moss-colored flightless parrot has climbed to the top-spot for the second time in Forest & Bird’s annual Te Manu Rongonui o Te Tau/Bird of the Year competition. ... More>>