Wednesday, October 17, 2018
 Dairy Product Prices Fall 3% At The Latest Global Dairy Trade Auction  

Dairy product prices fell 3% at today’s Global Dairy Trade auction, bringing to an end the increases seen in auction prices during the last four marketing events.

A total of 33,937 metic tons of product sold at the October 4th auction for an average selling price of $2,880 per ton.

Whole Milk Powder prices dropped by 3.8%, while Skimmed Milk Powder (SMP) declined by 3.8%.

All of the other commodities on offer at the October 4th auction posted a decrease in values, with the exception of Butter Milk Powder (BMP) which increased by 9%.

Butter and other fat prices had previously been rising rapidly, helping to pull up the overall auction price. However, some New Zealand dairy futures prices are reported to have eased over the last week according to AgriHQ, so the loss of price momentum may not be entirely unexpected, according to UK levy board AHDB Dairy.

Meanwhile, the Irish Farmers Association (IFA) National Dairy Committee Chairman Sean O’Leary said the price fall was not necessarily a bad thing, as it might help avoid global dairy prices overheating.

He said the recovery trend remains solid, with output easing in all regions bar the US.

“Since mid-July, the GDT index has increased 28 per cent, even allowing for today’s small decrease. This trend is based on lower global milk supplies, and these are also pushing EU dairy commodity prices up in a way which makes it clear that dairy markets are now in full recovery mode,” he said.

“Demand is also reasonably buoyant, with Chinese dairy imports up 27 per cent for the January to August period, partly due to a disimproving level of self-sufficiency, and good performance in the rest of Asia and South America,” he added.

This auction had a total of 125 winner bidders out of 166 participating bidders. The next auction is schedule for October 18, 2016.

Source: Global Dairy Trade


Posted on Thursday, October 06, 2016 (Archive on Thursday, October 13, 2016)
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