Global dairy prices slip

05 Jul, 2017 10:15 AM
Comments
0
 
Source: GlobalDairyTrade
In short, butter is back!
Source: GlobalDairyTrade

Global dairy prices dipped slightly at the Global Dairy Trade Auction on Tuesday night.

The GDT price index was down 0.4 per cent.

But the overall result disguised mixed results for different categories.

The key Whole Milk Powder index rose 2.6 per cent and the Butter Milk Powder index rose 10.8 per cent, but other indexes were all down.

The biggest fall was in the skim milk powder index - down 4.5 per cent.

The 0.4 per cent dip meant prices have fallen at consecutive auctions after six consecutive rises.

Prices fell 0.8 per cent at the previous auction two weeks ago.

Butter prices slipped 0.1 per cent but over the past year they have doubled.

New Zealand ASB economist Nathan Penny put the high levels down to a change in sentiment.

"Much of this surge in milk fat prices can be put down to an acknowledgement by the scientific community that fats are no longer as bad for your health as once feared," he wrote in the ASB's latest Farmshed Economics.

"In particular, this notion has been embraced in North America. In short, butter is back!"

While the global dairy market outlook remained firm, Mr Penny expected prices to fluctuate around current levels over coming months.

"So far, this calm bodes well for our 2017-18 milk price forecast (for NZ) of $NZ6.75 a kilogram milk solids."

Production rates in Europe declined 1.6 per cent during the first four months of 2017. New Zealand output is expected to increase during the next 12 months.

​AgriHQ said prices for nearer-dated WMP contracts lifted more than prices for later dated ones, suggesting some buyers needed WMP more urgently than others.

Large stocks of SMP still available from Europe were responsible for bringing prices of that product down.

Buyers from North Asia and from the Middle East bought more product than they did at the June 20 event.

A total of 28,574 metric tonnes of product was sold. There were 165 participating bidders, with an average price of US$3303 per tonne.

with New Zealand Farmer

POST A COMMENT


Screen name *
Email address *
Remember me?
Comment *
 
Effective pasture management is one of the most important aspects of successful dairy production, yet many dairyfarmers are not using pasture measurement equipment.17 Feb 18 Effective pasture management is one of the most important aspects of successful dairy production, yet many...
ALLORA, Qld, dairy farmers Andrew and Chris Mullins, Queensland, have been operating in partnership for the past ten years and have a clear vision on how they produce, plus manage, their forage feeding systems. 
05 Feb 18 ALLORA, Qld, dairy farmers Andrew and Chris Mullins, Queensland, have been operating in partnership for the past ten...
light grey arrow
Just wondering if it is true that you will be discontinuing the Devondale long life cream
light grey arrow
The disconnect here is that Farmers believe they are selling a Value Added Product (and, that is
light grey arrow
Read the building regulations, there has been changes for farm buildings. None of this is
Like a lot of dairyfarmers, Steven and Leanne Wieland's Boonah, Qld, business has grown in the past decade.13 Feb 18 Like a lot of dairyfarmers, Steven and Leanne Wieland's Boonah, Qld, business has grown in the past decade.
A Western Australian dairyfarmer says his simple effluent management system is the most cost-effective and labour efficient for his farm.
06 Feb 18 A Western Australian dairyfarmer says his simple effluent management system is the most cost-effective and labour...
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.