Wednesday, August 15, 2018
 Dairy Prices Fall While Volumes Increase At Auction  

Global dairy prices continued to moderate after a strong run earlier in the year at the latest auction on July 4th, although closely watched whole milk powder prices rose.


The Global Dairy Trade (GDT) Price Index dipped 0.4 percent, with an average selling price of $3,303 per ton. The index had slipped 0.8 percent at the previous sale. 

After two years of declining prices, farmers and analysts had been concerned that a 50 percent rebound during 2016 could be temporary, but prices got back on track the past few months as global supply tightened.

Losses were lead by anhydrous milk fat, which fell 3.5 percent, while butter milk powder rose 10.8 percent.

“There has been concern that buyers would no longer be able to absorb the record prices that these two commodities have been hitting, though it is too early to tell whether this is the start of a longer term downward trend,” AgriHQ analyst Amy Castleton said in a research note.

Nevertheless, whole milk powder, the key export for New Zealand rose 2.6 percent to $3,111 a ton.
A total of 28,574 tons of product were sold at the latest auction, an increase of 35 percent from the previous auction.

There were 127 winning bidders out of 165 participating at the 19-round auction. The number of qualified bidders rose to 523, up from 522 at the previous auction. The auctions are held twice a month, with the next event scheduled for July 18.

Source: Global Dairy Trade

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