Wednesday, November 14, 2018
 Dairy Product Prices Continue To Climb For The Third Consecutive Auction  

Dairy product prices rose in the latest GlobalDairyTrade auction, climbing for a third straight auction after nearly six months of declines. The GDT average winning prices jumped 16.5% to $US2568, up from $US2226 at the previous auction two weeks ago. It was the largest price increase in five years, according to AgriHQ dairy analyst Susan Kilsby. Some 36,050 tons of product was sold, up from 35,865 tons of product two weeks ago.


The increase was larger than expected. The volume of whole milk powder offered was 5% lower than at the previous auction and 43% less than a year ago.


"The lower volumes of product offered on GDT along with expectations that New Zealand milk production will fall this season are the factors pushing prices higher," Ms. Kilsby said in a note.


"Buyers are aware that a drier-than-normal summer will slow milk output in New Zealand. We are starting to see a little more urgency from buyers wishing to secure purchases," according to Ms. Kilsby.


The AgriHQ 2015-16 Farmgate Milk Price has increased 46c to $4.65 per kilogram of milksolids, compared with Fonterra's milk price forecast of $3.85/kgMS.


Whole milk powder soared 20.6% to $US2495 a ton, while skim milk powder rallied 17.0% to $US1992 a ton. Anhydrous milk fat climbed 13.7% to US$US3440 a ton, while butter rose 13.3% to US$3,108 a ton. Cheddar increased 10.7% to $3206 a ton, while lactose gained 3.1% to $US499 a ton, and rennet casein added 0.6% to $US5807 a ton. Butter milk powder fell 1.9% to $US1719 a ton.


There were 121 winning bidders out of 186 participating bidders at the 18-round auction. The number of qualified bidders rose from 635 to 639.. The next event is scheduled for October 6, 2015.

Source: The National Business Review


Posted on Thursday, September 17, 2015 (Archive on Thursday, September 24, 2015)
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