increase font size
Whole milk powder prices fell 2.1% last week.
The upheaval in the Middle East may have eased the fall in global dairy prices last week.
Last week's Global Dairy Trade (GDT) auction saw prices slip, however Middle Eastern demand for milk fats increased.
Whole milk powder prices dipped 2.1% to US$4,084/tonne. Skim milk powder price was down 1.3%. But butter prices continue to climb, rising 1.45% to US $7,890/tonne.
According to NZX market analyst Lewis Hoggard, the demand outlook seemed to be weakening over the past few weeks as buyers wait for new season product.
However, he believes there was a degree of stockpiling pressure due to elevated geopolitical risk in the Middle East which helped ease the fall in commodity prices.
"Due to another flare up in tensions in the Middle East, we had a keen eye on what their buying behaviour would be at this GDT.
"Similar to early last year at the start of the Israel-Hamas war, Middle Eastern demand for milk fats increased which put upward pressure on NZ prices. Thirty-two% of butter at this auction was sold to the Middle East, a stark contrast from the previous auction where they bought no butter."
The Middle East was also the second largest purchaser of AMF at this event and bought a whopping 47% of the cheddar on offer, which helped bid the price of cheddar up 5.1%, just shy of the US$5,000/t mark.
Hoggard notes that NZ product outperformed the futures market expectations prior to last week's auction, especially for butter which saw yet another increase in price.
"Coming into the event there was plenty of downward pressure on milk powders, especially at GDT Pulse, and the futures market had seen some selling pressure down the curve.
"We also noted that the premium for NZ SMP over EU has fallen below $100/t, as EU prices have rallied in recent weeks against falling NZ SMP prices."
Global Dairy Trade (GDT) and Arla Foods have announced that Arla will begin offering European-sourced skim milk powder (SMP) on GDT Pulse from May 2025 as part of an extension to the GDT Pulse pilot.
The cost of producing milk in New Zealand continues to compare favourably with other exporting regions despite a lift in production costs over the past five years.
A significant rise in Global Dairy Trade (GDT) auction last week has prompted one bank to lift its forecast milk price for the season to above Fonterra's mid-point.
Whole milk powder prices on Global Dairy Trade (GDT) remains above long run averages and a $10/kgMS milk price for the season remains on the card, says ASB senior economist Chris Tennent-Brown.
The first Global Dairy Trade (GDT) auction drew mixed results, with drop in powder prices and lift in butter and cheeses.
There's no doubt that vehicle manufacturers at Fieldays saw a steady stream of rural folk treading the boards.
Fonterra's co-op model and what it does for New Zealand has lured one of its bright stars back on board.
Farmer lobby Federated Farmers is reporting a growth in membership, for the first time in decades.
New Zealand's Ruminant Biotech says that while it has big goals, the scale of the problem it seeks to solve requires it.
The upheaval in the Middle East may have eased the fall in global dairy prices last week.
New Zealand tech company Halter has raised $165 million from investors in its latest fundraising round.
OPINION: As Fonterra's divestment of its Oceania and global consumer businesses progresses, clear contenders are emerging.
OPINION: After hopping from one event to another at Fieldays, Associate Agriculture Minister Andrew Hoggard would have been hoping for…
