Friday, November 16, 2018
 Overall Prices Fall Back By 1.2% at Fonterra Auction  

Dairy product prices have recorded their biggest drop since early November in the latest GlobalDairyTrade auction, with the volume sold falling to an eight-month low. Milk protein concentrate and butter led the decline.

The GDT Price Index fell 1.2 percent from the last sale two weeks ago. The average winning price was US$5,016 a ton from US$5,042 a ton at the last auction.

Some 34,568 tons of product was sold, the lowest since June last year and down from 35,399 tons of product in the previous sale.

Milk protein concentrate fell 5.4 percent to US$8,824 a ton and butter slid 3.8 percent from its highest level in at least a year, to US$4,586 a ton. Whole milk powder, the biggest product sold by volume, fell 0.3 percent to US$4,999 a ton.

Prices fell for the first time in three auctions and come after the monthly ANZ Commodity Price Index rose 1.2 percent to a record in January, with butter leading the gains. In December, Fonterra Cooperative Group, the world's biggest exporter of dairy products, kept its forecast farmgate milk price at a record high while slashing its dividend target, saying high prices for milk powder hadn't been matched by cheese and casein.

Cheddar dropped 1.7 percent to US$4,845 a ton in the latest auction and rennet casein fell 3.5 percent to US$11,461 a ton. Butter milk powder rose 3.1 percent to US$5,355 per ton and anhydrous milk fat fell 4.5 percent to USS5,314 a ton. Skim milk powder slipped 0.1 percent to US$4,780 a ton.

The February 18th auction had 793 qualifying bidders with 191 participating bidders and 130 winning bidders. The next Fonterra auction is due to take place on March 4.



Source: Global Dairy Trade

Posted on Thursday, February 20, 2014 (Archive on Thursday, February 27, 2014)
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