Dairy product prices fall 1.1% in latest GDT auction

Dairy product prices fall 1.1% in latest GDT auction, volumes hold up after record August

Sept. 4 (BusinessDesk) - Prices of dairy products fell in the latest GlobalDairyTrade auction though volumes held up, extending the elevated levels that saw Fonterra Cooperative Group report record sales last month.

The GDT Price Index, previously known as the GDT-TWI Price Index, fell 1.1 percent compared to the last sale two weeks ago. The average winning price was US$4,891 a tonne compared to US$4,941 a tonne.

The total volume of dairy products sold at the latest auction fell to 53,479 tonnes from 56,173 tonnes two weeks ago, although it remains above the average sales volume this year of 33,744 tonnes. Fonterra, whose product dominates the platform, had record sales in August of a combined 109,664 tonnes, worth $685 million. This week Synlait Milk joined Fonterra and Westland Milk in hiking its forecast payout to farmers.

The average winning price of whole milk powder, the biggest product by volume, fell 1.7 percent to US$5,058 a tonne. Skim milk powder fell 0.8 percent to US$4,420 a tonne.

The price of anhydrous milk fat rose 3.1 percent to US$5,109 a tonne and butter milk powder rose 0.3 percent to US$4,566 a tonne. Butter rose 2.7 percent to US$3,710 a tonne.

Cheddar fell 3.2 percent to US$4,257 a tonne. Lactose sold at US$1,359 a tonne and milk protein concentrate fell 3.8 percent to US$7,613 a tonne. Rennet casein fell 2.1 percent to $9,864 a tonne.

There were 126 winning bidders over 10 rounds. There were 199 participating bidders out of a total number of qualified bidders of 873.

(BusinessDesk)

© Scoop Media