Wednesday, October 17, 2018
 Dairy Prices Up at Auction  

Dairy product prices advanced at the May 2nd Global Dairy Trade auction, increasing for the fourth consecutive time amid strong demand. The GDT price index climbed 3.6 percent from the previous auction two weeks ago to US$3,166. Some 22,633 tons of product was sold, down from 22,927 tons at the previous auction. Whole milk powder rose 5.2 percent to US$3,233 a ton.

"Buyer demand was robust," AgriHQ dairy analyst Susan Kilsby said in a note. "There was strong participation in the auction by buyers from North Asia," according to Kilsby.

"A lack of profitability in China's own dairy farming sector has limited expansion of some farming operations and is expected to have some impact on their domestic milk supply."

At the latest GDT auction, butter milk powder soared 21.8 percent to US$1,859 a ton, while rennet casein jumped 10.4 percent to US$6,775 a ton.

Anhydrous milk fat gained 4.7 percent to US$6,185 a ton, while cheddar added 4.6 percent to US$3,666 a ton.

Butter increased 1.1 percent to US$4,911 a ton, while lactose rose 1.1 percent to US$941 a ton. Bucking the trend, skim milk powder slipped 0.9 percent to US$1,982 a ton.

Skim milk powder "prices remain under pressure due to the massive stocks of this product that have built up in Europe," Kilsby said.

"The SMP offered by Fonterra from both New Zealand and Australia achieved a small premium over equivalent product offered by European dairy company Arla Foods."

There were 106 winning bidders out of 163 participating at the 15-round auction. The number of qualified bidders rose to 548, up from 541 at the previous auction. The next event is scheduled for May 16, 2017.

Source: GlobalDairyTrade

Posted on Friday, May 05, 2017 (Archive on Friday, May 12, 2017)
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