Wednesday, 06 April 2016 11:14

GDT goes the right way

Written by 
Dairy prices lifted 2.1% at Fonterra's GlobalDairyTrade auction last night. Dairy prices lifted 2.1% at Fonterra's GlobalDairyTrade auction last night.

Dairy prices lifted 2.1% at Fonterra's GlobalDairyTrade auction last night.

The whole milk powder index rose to 1.5%, with an average price US$2,013/MT and skim milk powder was up 0.1%, to an average price US$1,721/MT.

ASB's chief economist Nick Tuffley says the whole milk price increases were concentrated in the near-dated delivery contracts, hinting at potential price pressure as the peak of NZ's season recedes. Skim powder prices were flat.

There were some very divergent price moves for other products, though mainly a continuation of recent volatility, he says. Cheese and anhydrous milk fat price prices gained sharply, reversing recent weakness, while butter milk powder prices gave back their recent recovery.

"We expect dairy prices to gradually trend up over the coming season as NZ and European production respond to the current low prices and as Chinese import demand recovers."

ASB is maintaining its 2015/16 and 2016/17 milk price forecasts at $3.90/kgMS and $6/kgMS, respectively.

Key Results of Event 161

AMF index up 6.7%, average price US$3,203/MT; Butter index down 2.0%, average price US$2,702/MT; BMP index down 8.2%, average price US$1,395/MT; Ched index up 10.5%, average price US$2,778/MT; LAC index up 6.2%, average price US$661/MT; RenCas index up 11.8%, average price US$4,438/MT

See www.GlobalDairyTrade.info

More like this

Fonterra R&D: Innovation needs more than just PhDs

Common sense and good human judgement are still a key requirement for the super highly qualified staff working at one of New Zealand's largest and most important research facilities - Fonterra's R&D Centre at Palmerston North.

Featured

National

Machinery & Products

Fliegl offers effluent solutions

Founded in Germany as recently as 1977, today, the Fliegl Group employs more than 1100 workers, offering an expansive range…

» Latest Print Issues Online

Milking It

It's all about economics

OPINION: According to media reports, the eye-watering price of butter has prompted Finance Minister Nicola Willis to ask for a…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter