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Monday, December 18, 2017
 Dairy Prices Rise At Auction, While Volumes Fall  

International milk prices rose for the third time in a row while volumes fell in the latest auction held by Fonterra. The December 17th GlobalDairyTrade event recorded an average winning price of US$4,990/ton across the 47,858 tons of product sold. The total volume of product sold was down 7.9% from the previous auction. However, the GDT Price Index increased by 0.2% to 1,466 points. 

Whole milk powder (WMP) prices softened slightly for Contract 2 product supplied by both Fonterra and Amul. The premium paid for Fonterra product over Amul has dropped to US$125/ton.
Prices averaged more than US$5,000 per ton for deliveries in the March 2014 to May 2014 period.


Skim milk powder (SMP) pricing showed an upward sloping forward price curve for Fonterra product while the reverse was typically the case for SMP supplied by DairyAmerica. This is not surprising given the difference in production curves between New Zealand and the US.


Milkfat products showed strong price increases at the December 17th auction. Anhydrous milkfat prices moved up by 4.4% on average while butter prices jumped up 7.9%. The increase in the butter price was solely driven by Fonterra product which firmed considerably while DairyAmerica butter softened in price.


Anhydrous milkfat prices moved up across all product grades and delivery periods. Regular 210kg drums of AMF were priced at US$5,500/ton with premium grade product priced up to US$6,385/ton.


There was little change in cheese pricing with the average winning price up slightly to US$4569/ton. The MPC70 Price Index increased by 3.9%. Rennet Casein prices moved up considerably to average US$11,770/ton.


The December 17th auction hosted 202 participating bidders with 133 of them taking winning bids. The next auction will be held January 7, 2014.

Source: GlobalDairyTrade


Posted on Thursday, December 19, 2013 (Archive on Thursday, December 26, 2013)
Posted by bholcomb@adpi.org  Contributed by bholcomb@adpi.org
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