Prices fall at auc­tion

Shepparton News - Country News - - DAIRY NEWS -

Dairy prod­uct prices have un­ex­pect­edly de­clined at Fon­terra’s Glob­alDairyTrade auc­tion, fall­ing for the fifth time in eight auc­tions amid con­fi­dence in am­ple sup­ply.

The GDT price in­dex fell 2.4 per cent from the pre­vi­ous auc­tion two weeks ago and the av­er­age price fell to $US3223/ tonne.

Some 37 990 tonnes of prod­uct was sold, up from 34 117 tonnes at the pre­vi­ous auc­tion.

‘‘The NZX Dairy De­riv­a­tives mar­ket had an­tic­i­pated a strong lift in prices . . . par­tic­u­larly for whole milk pow­der, with plenty of trad­ing ac­tiv­ity oc­cur­ring early this week,’’ AgriHQ dairy an­a­lyst Susan Kilsby said.

‘‘New Zealand milk pro­duc­tion has had a slow start this sea­son, and it ap­peared that the mar­ket was fi­nally tak­ing note of this. But this did not ap­pear in auc­tion re­sults.’’

Whole milk pow­der fell 2.7 per cent to $US3037/tonne.

‘‘WMP of­fer vol­umes were at their sea­sonal peak at this event,’’ Ms Kilsby said.

‘‘Nearly all of this prod­uct was sold, but buy­ers were not will­ing to pay more for it.

‘‘WMP of­fer vol­umes have not changed much de­spite the poor start to the New Zealand milk pro­duc­tion sea­son, which may have given buy­ers the con­fi­dence they will not have to com­pete too hard to se­cure prod­uct.’’

At the lat­est auc­tion, but­ter milk pow­der slumped 10.3 per cent to $US1804/tonne, while but­ter slid 3.6 per cent to $US5837/ tonne.

An­hy­drous milk fat fell 3.4 per cent to $US6504/tonne, while skim milk pow­der de­creased 1.4 per cent to $US1895/tonne.

Buck­ing the trend, ren­net ca­sein rose 0.9 per cent to $US6123/tonne, while ched­dar de­clined 1.9 per cent to $US4109/tonne.

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