Dairy prices soar
Whole milk powder up 19.8%, average prices 11.4% in latest fortnightly Global Dairy Trade auction overnight.
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Dairy product prices climbed substantially at the Global Dairy Trade auction, increasing for the sixth time in seven auctions, bolstered by a jump in whole milk powder amid lower supply (scroll down for charts and price trends).
The GDT price index jumped 11.4% to $US3327, up from $US2965 at the previous auction two weeks ago. Some 27,735 tonnes of product was sold, down from 31,525 tonnes at the previous auction.
Whole milk powder soared 19.8% to $US3317 a tonne – breakeven territory for many farmers.
Last week Fonterra said it reduced its forecast milk volume for the 2016-17 season in New Zealand to 1460 million kilograms of milk solids, 6.8% below the volume collected last season, AgriHQ dairy analyst Susan Kilsby says.
"Dairy markets reacted sharply to tightening milk supply in New Zealand," she says. "This positive GDT result will put upward pressure on milk price forecasts."
At the latest GDT auction, skim milk powder rallied 6.5% to $US2329 a tonne, while butter gained 4% to $US4146 a tonne.
Anhydrous milk fat increased 2.6% to $US5146 a tonne, while cheddar added 0.9% to $US3332 a tonne.
Meanwhile, lactose dropped 4.0% to $US755 a tonne, rennet casein fell 4.8% to $US6025 a tonne, and butter milk powder dropped 5.4% to $US2248 a tonne.
The New Zealand dollar last traded at 71.69USc at about 12.27pm in New York, compared with 71.51USc at 5pm in Wellington the previous day.
There were 107 winning bidders out of 166 participating at the 17-round auction. The number of qualified bidders dropped to 510, down from 620 at the previous auction.
Source: GlobalDairyTrade.info. Click to zoom.
(BusinessDesk)
Margreet Dietz
Wed, 02 Nov 2016
Wed, 02 Nov 2016
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Dairy prices soar
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