Wednesday, 05 July 2017 15:08

"Mild" fall in dairy prices

Written by 
Westpac analyst Michael Gordon says dairy prices may fall slightly over the year as global production bounces back from last year’s depressed levels.

Commenting on last night Global Dairy Trade (GDT) auction results, Gordon says there was a mild 0.4% fall in dairy prices.

“The product mix was effectively a mirror image of the previous auction, with a 2.6% rise in whole milk powder prices but declines for most other products.

“We’re expecting a modest fall in dairy prices over the rest of this year, as global milk production bounces back from last year’s depressed levels. Global demand continues to grow at a subdued pace, and stockpiles of milk powder remain substantial, especially in Europe.

“Russia recently extended its ban on food imports from the EU until the end of 2018, though it has yet to make a decision on the ban from other Western markets, which currently runs to the end of this year.”

Key Results AMF index down 3.5%, average price US$6,596/MT Butter index down 0.1%, average price US$5,775/MT BMP index up 10.8%, average price US$2,264/MT Ched index down 3.2%, average price US$4,051/MT LAC index down 3.3%, average price US$839/MT RenCas index down 2.7%, average price US$6,133/MT SMP index down 4.5%, average price US$2,090/MT WMP index up 2.6%, average price US$3,111/MT

More like this

Dairy shines in Covid world

Consumers are flocking back to dairy products as Covid shines the light on health and wellness, says Tom Bailey, the new senior vice president for Southern Pastures.

Dairy's golden run continues

Global dairy prices have continued their golden run, with the Global Dairy Trade auction recording its seventh consecutive rise in the price index.

Up, up and away

Don't rule out another lift in Fonterra’s milk price with global dairy prices on a roll, say commentators.

National

Job losses worry meat sector

New Zealand's meat processing industry says, while it supports moves away from coal, it has some major concerns about cuts…

Manawatu's economy bouncing back

Although the national economy is still functioning below pre-pandemic levels and the road ahead remains uncertain, the Manawatu region appears…

» The RNG Weather Report

» Latest Print Issues Online

The Hound

Great idea

OPINION: Your old mate has long argued Landcorp’s farming business – Pamu – is a bigger dog than he is.

Unemployable?

OPINION: Your canine crusader shakes his head at the complete lack of practical and real-world knowledge in both government and…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter