Dairy product prices retreat in biggest decline since early March
New Zealand milk production data may have contributed to buyer apathy.
Dairy product prices slid at the Global Dairy Trade auction, with an unexpected decline in the price of whole milk powder.
The GDT price index dropped 3.9% from the previous auction two weeks ago to $US2969. Some 29,592 tonnes of product was sold, marginally higher than 29,514 tonnes sold two weeks ago.
Whole milk powder fell 2.5% to $US2755 a tonne.
On Tuesday, a report by the Dairy Companies Association showed production in New Zealand rose 3.4% in November when measured in terms of milk solids.
"New Zealand milk production data may have contributed to buyer apathy," AgriHQ dairy analyst Amy Castleton, says.
"The more informed international buyers would be aware New Zealand typically has surplus pasture during November.
"Therefore, the impact of the dry conditions will only start to be reflected in milk volumes from December when the quantity and the quality of the pasture available generally start to fall," Ms Castleton says.
At the latest GDT auction, cheddar sank 7.9% to $US3389 a tonne, while anhydrous milk fat shed 6.7% to $US6392 a tonne.
Rennet casein dropped 6.3% to $US4506 a tonne, while skim milk powder declined 4.8% to a $US1675 tonne, and butter gave up 2.3% to $US4474 a tonne.
No prices were available for lactose. Buttermilk powder was not offered at this event.
The New Zealand dollar last traded at 69.87USc at 1.06pm in New York, compared with 69.95USc at 5pm in Wellington the previous day.
There were 139 winning bidders out of 167 participating at the 13-round auction. The number of qualified bidders fell to 509, down from 563 at the previous auction.
(BusinessDesk)
Margreet Dietz
Wed, 20 Dec 2017
Wed, 20 Dec 2017
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Dairy product prices retreat in biggest decline since early March
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