Friday, October 19, 2018
 Global Dairy Trade Rises Slightly, As EU Tries To Curtail Production  

The July 19th Global Dairy Trade auction showed no change in the GDT index of prices traded for dairy products. The average price remained at US$2,336, following a 0.4% decline in prices previously and prices have not increased in any of the last three auctions.


New Zealand's major export, whole milk powder (WMP), rose 1.9%  to US$2,079, recovering from its fourth consecutive drop.  But overall prices were held back by a 5% drop in the price of butter, and a 4% drop for lactose.


Westpac economist Anne Boniface said prices were likely to bump around near current levels for much of 2016, before gradually improving late in the year and into next year.


"That said, we don't anticipate a quick  turnaround in fortunes in the dairy sector. Prices have been low for an extended period, meaning many  buyers are likely to be well stocked," Boniface said.


A new European Commission support package aimed at encouraging European farmers to cut production was introduced this week. It also plans to prolong its program of stockpiling skim milk powder, with more than 250,000 tons already in storage.


Agri HQ analyst Susan Kilsby said this would be positive in the short term but would allow inefficient farmers to continue in business. The July 19th auction had a total of 168 bidders, with 31,348 metric tons of product on offer.

The next event is scheduled for August 2, 2016.

Source: GlobalDairyTrade


Posted on Thursday, July 21, 2016 (Archive on Thursday, July 28, 2016)
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