Global dairy prices leap 4.2%

16 Jan, 2019 11:19 AM
Comments
0
 
But the rally was not enough to recover losses in the second half of 2018.

Dairy prices recorded their biggest increase in almost a year at the Global Dairy Trade auction on Tuesday evening.

The GDT price index leapt 4.2 per cent to $US3057 a tonne, the fourth consecutive increase after several months of decline.

But the rally was not enough to recover losses in the second half of 2018, with the index now close to its August 2018 level.

Skim milk powder prices led the charge, up 10.3pc to $US2405/t.

Lactose also rose sharply, up 7.9pc to $US1032/tonne, while the key whole milk powder index was up 3pc to $US2777/t and cheddar was up 4.3pc to $3504/t.

Fats also lifted with butter up 4.6pc to $US4262/t and anhydrous milk fat up 3.2pc to $US5294/t.

Rennet casein was the only commodity to buck the trend, down 1.4pc to US$5047/t.

Related reading

  • Global prices trend upwards
  • Dairy exports slow as production drop bites
  • Global dairy trade up 2.2 per cent
  • Despite the rally, the Australian Government Milk Price Index is forecasting a decline in commodity prices in 2019.

    Its Commodity Milk Price Index (CMPI) rose by 1pc between September and October 2018 (the last month for which data on Australian exports was available).

    But it said preliminary estimates based on movements in the GDT Price Index suggest the CMPI declined 4pc from October to December 2018.

    "The CMPI is forecast to be 3pc lower in December 2019 compared to December 2018," the Milk Price Index website reported.

    "Deloitte Access Economics forecasts a modest decline in prices in 2019 for rural exports.

    "This leads to the 12-month forecast for the CMPI to decrease modestly."

    The Food and Agricultural Organisation's global Dairy Price Index also declined in December.

    It averaged 170 points for the month, down 5.9 points (3.3pc) from November, marking the seventh successive month of decrease.

    In December, international price quotations for butter, cheese and WMP declined, underpinned by increased availability of export supplies, especially from New Zealand.

    However, SMP prices increased marginally on stronger world import demand.

    For the whole of 2018, the index averaged 192.9 points, down 4.6pc from 2017, as a result of declines in price quotations for all dairy products included in the index during the second half of the year.

    Page:
    1

    POST A COMMENT


    Screen name *
    Email address *
    Remember me?
    Comment *
     
    A TOUGH 2018-19 season and improved irrigation technology has inspired a new crop along the river flats at Murray Bridge, South Australia.
30 Jan 19 A TOUGH 2018-19 season and improved irrigation technology has inspired a new crop along the river flats at Murray...
    Best management practice of ryegrass and managing the residual height throughout dry periods is critical to enhance persistence of pasture. 
26 Dec 18 Best management practice of ryegrass and managing the residual height throughout dry periods is critical to enhance...
    light grey arrow
    ABOUT TIME SOMEONE REALISED THE MILK INDUSTRY IS NEAR EXTINCT. tO PRODUCE MILK COSTS MONEY MUCH
    light grey arrow
    Hello Frank, I suspect that the air entry problems I have experienced in silage bales over the
    light grey arrow
    Hope they are ready for when the milk pool drops below 8 billion litres and stays there.
    MASTITIS management is highly effective but far from conventional for Tasmanian dairy farm manager Richard Hori. That's no surprise given the herd is milked through a robotic dairy.
23 Jan 19 MASTITIS management is highly effective but far from conventional for Tasmanian dairy farm manager Richard Hori....
    Spending $2.7million to build a new dairy is part of a rolling upgrade and improvement plan for VAN Dairy Group, located at Cape Grim, Tasmania.29 Dec 18 Spending $2.7million to build a new dairy is part of a rolling upgrade and improvement plan for VAN Dairy Group,...
    Australian farm chemical manufacturer Nufarm has repaired its balance sheet and is now hunting for acquisition opportunities.25 Sep 16 Australian farm chemical manufacturer Nufarm has repaired its balance sheet and is now hunting for acquisition...
    Monopoly market may confront cropping sector under mega-merger proposal.22 Sep 16 Monopoly market may confront cropping sector under mega-merger proposal.