Wednesday, June 20, 2018
 Global Dairy Trade Prices Down  

The sixth Global Dairy Trade auction of the year, took place March 15th and saw a drop in dairy product prices of 2.9%. This fall comes after dairy products rose 1.4% at the previous auction on March 1.

 

This latest Global Dairy Trade auction result was a good reflection of the current fragility in the dairy market, according to ASB Bank in New Zealand. After a positive result last auction, weak commodity market sentiment, particularly from oil, knocked dairy prices back at Fonterra’s latest Global Dairy Trade auction, it says.


According to Nathan Penny, ASB Rural Economist, the rise and fall nature of dairy prices is likely to continue. He said that over the coming months any price lift will be modest and often accompanied by a subsequent price fall.


The latest GDT auction sold a total of 20,406 tons of dairy products for an average selling price of $2,190 per ton. This was a 2.9% decrease in price and a 6.7% fall in volume.

 

The only products that saw an increase were lactose which rose 0.8%  to US$624 a ton and butter milk powder which climbed 6.4% to US$1,545 a ton.

 

Skim milk powder prices fell 2.5% to US$1,731 a ton, while whole milk powder slipped 0.8% to US$1,971 a ton.


Rennet casein also dropped 7.0% to US$4,083 a ton, while anhydrous milk fat fell 6.5% to US$3,014 a ton. Cheddar declined 5.6% to US$2,441 a ton, while butter slid 2.8% to US$2,733 a ton.


There were 118 winning bidders out of 134 participating bidders at the 13-round auction. The next auction is scheduled for March 29th. 

Source: GlobalDairyTrade

 


Posted on Thursday, March 17, 2016 (Archive on Thursday, March 24, 2016)
Posted by bholcomb@adpi.org  Contributed by bholcomb@adpi.org
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