Wednesday, 06 May 2020 10:40

Dairy prices ‘hanging in there’

Written by Staff Reporters

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The overnight Global Dairy Trade auction saw the price index fall by 0.8% compared to the previous event.

New Zealand dairy prices are “still hanging in there,” relatively speaking, says US-based RaboResearch dairy analyst Tom Bailey.

The overnight Global Dairy Trade auction saw the price index fall by a slim 0.8% compared to the previous event.

Total volumes sold were 20% lower, aligned to seasonal declines, and broad expectations. Both WMP and SMP prices increased, 0.1% versus the last event. Prices for butter and AMF took a hit, down 5.8% and 2.4%, respectively.

Bailey says diving into the numbers, at first blush there is not a big story to tell.

“Offer volumes were largely unchanged for core products WMP and SMP.

“There was an increase in butter and AMF volumes, 42% and 3.5% respectively – helping to explain their price falls.”

Key results

AMF index down 2.4%, average price US$3,973/MT

Butter index down 5.8%, average price US$3,867/MT

Ched index down 6.8%, average price US$4,115/MT

LAC index up 7.9%, average price US$1,153/MT

RenCas index down 5.1%, average price US$8,891/MT

SMP index up 0.1%, average price US$2,373/MT

WMP index up 0.1%, average price US$2,745/MT

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