Prices may drop for third straight global dairy auction
Futures trading on the NZX this morning indicated whole milk powder prices will slip 3%.
Hot Topic
Hawke’s Bay
Prices on the GlobalDairyTrade platform may drop for a third straight auction tonight as supply outstrips demand.
Futures trading on the NZX this morning indicated whole milk powder prices will slip 3%, skim milk powder will drop 6% and milkfat products such as butter and anhydrous milk fat will decline between 2 and 3%, according to AgriHQ senior dairy analyst Susan Kilsby.
Fonterra Cooperative Group, the world's largest dairy exporter, earlier this month announced it would lift the volume of whole milk powder and skim milk powder offered in coming auctions on the GDT platform by about 25,000 tonnes as more favourable weather meant it collected more milk than expected from its farmer suppliers.
"We did see some gain in whole milk powder prices last week but since Friday the future market has eased back," Ms Kilsby said. "There is nearly 10% more whole milk powder available at this auction than the previous event so it will be a challenge for the market to absorb this extra volume without some slippage in price."
Dairy products are New Zealand's largest commodity export, worth $11.25 billion in the year ended Jan. 31, according to the latest trade data from Statistics New Zealand.
(BusinessDesk)
Tina Morrison
Tue, 21 Mar 2017
Tue, 21 Mar 2017
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Prices may drop for third straight global dairy auction
65734