Global dairy trade up 2.2 per cent

05 Dec, 2018 08:57 AM
Comments
0
 
The Global Dairy Trade auction has moved into positive territory for the first time since May. Source: Global Dairy Trade
Butter milk powder was the standout, leaping 16.9 per cent.
The Global Dairy Trade auction has moved into positive territory for the first time since May. Source: Global Dairy Trade

Prices increased on the Global Dairy Trade auction on Tuesday night for the first time since May.

The price index rose 2.2 per cent to $US2819 a tonne, following seven consecutive falls.

All categories with the exception of cheddar rallied.

But the price rise was most likely due to a falling US dollar and not a reflection of the change in the underlying market.

Butter milk powder was the standout, leaping 16.9 per cent.

The key whole milk powder index also rose, up 2.5 per cent to $US2667/tonne.

Prices still have a way to go to build back to levels earlier in the year and are still almost 9pc lower than at the same time last year.

Butter was up 2.7pc, anhydrous milkfat 3.9pc and casein 2pc.

Cheddar fell 2.2pc to US$3184/tonne.

New Zealand ASB senior rural economist Nathan Penny told Stuff the result was a positive, but currency movements were likely to explain most of the price gain.

"The rise is similar to falls in the US currency over the past fortnight," he said.

"In particular, the Chinese yuan has lifted, making the USD-priced products cheaper for Chinese buyers."

Mr Penny warned already-strong New Zealand dairy production could further increase.

"Recent favourable weather and growing conditions are likely to translate to strong or even stronger production numbers over summer," he said.

"And remember that October production was already an all-time high."

On that basis, dairy prices were expected to remain soft for the next few months.

Related reading

  • Global Dairy Trade slides again
  • Global prices continue to decline

  • 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.