Dairy product prices extend rebound on upbeat outlook
Third big rise in a row at the fortnightly Global Dairy Trade auction. With special feature audio.
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Dairy product prices climbed at the Global Dairy Trade auction, adding to fresh signs of expectations that the worldwide glut is easing.
The GDT price index rose 7.7% to $US2920, up from $US2731 at the previous auction three weeks ago. Some 36,748 tonnes of product was sold, down from 37,766 tonnes at the previous auction.
"This was a smaller overall lift than we saw at the last event, but is still an excellent result," AgriHQ dairy analyst Amy Van Ossenbruggen said in a note.
"While it may still be a little early to say dairy commodity prices are recovering, fundamentals are pointing towards a continued improvement in the sector."
Two weeks ago Auckland-based Fonterra, the world's No.1 dairy exporter, raised its forecast milk payout for the season because of gains at the GDT auction on August 16.
At the latest GDT auction, whole milk powder increased 3.7% to $US2793 a tonne.
"WMP volume was mostly sold through the middle of the curve-shipping November through January," according to Ms Van Ossenbruggen. "Much of the demand at this event came from China, followed by bidders from South East Asia and Oceania."
Anhydrous milk fat rallied 15.4% to $US4769 a tonne, while butter jumped 14.9% to $US3764 a tonne.
"Milk fats were the stars of this auction," Van Ossenbruggen noted.
Skim milk powder climbed 10% to $US2224 a tonne, while cheddar rose 9% to $US3436 a tonne.
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Butter milk powder advanced 6.8% to $US2070 a tonne, while rennet casein added 6.7% to $US6720 a tonne, and lactose rose 2% to $US787 a tonne.
The New Zealand dollar last traded at 74.13USc at about 1.09pm in New York, compared with 73.05USc at 5pm in Wellington the previous day.
There were 131 winning bidders out of 199 participating at the 14-round auction. The number of qualified bidders rose to 613, up from 606 at the previous auction.
(BusinessDesk)
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Margreet Dietz
Wed, 07 Sep 2016
Wed, 07 Sep 2016
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Dairy product prices extend rebound on upbeat outlook
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