Whole milk powder gains in GDT auction but overall index slips
Dairy products slip overall but still keep the price index at its highest level since April 3.
BUSINESSDESK: Whole milk powder rose in Fonterra’s latest GlobalDairyTrade auction even as overall prices of dairy products slipped but still kept the price index at its highest level since April 3.
The GDT-TWI Price Index fell 0.5% compared to the last sale in early June, when the index rebounded from a three-year low.
The average winning price rose to $US3042 a metric tonne from $US2899 a tonne two weeks ago. Whole milk powder rose 2.7% to $US2886 a tonne, the highest since early April.
Last month Fonterra, the world’s largest exporter of dairy products, cut its forecast 2012 milk price and flagged lower payments in 2013 in response to a slide in global prices for dairy commodities.
The co-operative says global supply and demand may start to rebalance later this year.
In the latest GDT auction, skim milk powder fell 4.8% to $US2834 a tonne. Anhydrous milk fat dropped 0.8% to $US3092 a tonne and cheddar fell 3.7% to $US3117.
Butter milk powder rose 2.5% to an average $US2509 a tonne. Lactose wasn’t offered.
Milk protein concentrate declined 2.7% to $US4214 a tonne and rennet casein fell 1.9% to $US6788.
There were 118 winning bidders over 13 rounds. There were 175 participating bidders out of a total number of qualified bidders that rose to 667 from 649.
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Whole milk powder gains in GDT auction but overall index slips
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