Mixed results on GDT
The first Global Dairy Trade (GDT) auction drew mixed results, with drop in powder prices and lift in butter and cheeses.
Good news for New Zealand dairy farmers – whole milk and skim milk powder prices rose in the overnight Global Dairy Trade (GDT) auction.
The GDT price index rose 0.8% but WMP price lifted 1.5% compared to the last auction to settle around US$3448/tonne. Skim milk powder (SMP) also rose 2.2% to reach US$2,809/t, its highest average price on the platform in the last 12 months.
NZX dairy analyst Rosalind Crickett notes that all prices rose at the latest auction aside from the milk fat products, of which both anhydrous milk fat (AMF) and butter prices softened.
“Given the price movement pencilled in by the SGX-NZX Derivatives market before the auction, results were largely in-line with our expectations. On this occasion 89% of the total 43,497t available was sold,” she says.
Factoring market sentiment, the increased demand for both milk powders is not surprising - given the off-peak of milk production in the northern hemisphere combined with factors such as the bluetongue virus which has been increasing in prominence in both the UK and Europe, according to Crickett.
Looking at milk fats, Anhydrous Milk Fat (AMF) eased -1.2% overnight to settle at US$7,220/t – its first change of direction after four consecutive increases at GDT events since July. Butter also softened -1.7% to reach an average price of US$6,546/t.
Among other products, cheddar rose 2.9% to reach its second highest price in the last 12 months of US$4,441/t. Mozzarella continues to know no limits, seeing a further 4.5% increase in prices to US$5,351/t. Lactose also saw a 3.5% increase this time, after a heavy decline at GDT 363, settling at US$896/t.
North Asia maintained its top purchasing spot for both milk powders and butter – accounting for 51% of the total product volumes. Southeast Asia/Oceania were the top buyer of AMF, while Africa was for cheddar.
The first phase of a Ministry for Primary Industries (MPI) investigation into allegations of mistreatment of sheep connected to shearing practices has been completed.
According to Biosecurity New Zealand, legal controls on the movement of fruit and vegetables in the South Auckland suburb of Papatoetoe will remain in place until mid-February.
The rollout of the New Zealand Genetic Evaluation Version 6 is said to mark a step-change in the depth and breadth of genetic information available to both stud and commercial sheep breeders.
With low wool prices, farmer interest in the self-shedding Wiltshire sheep continues to grow.
OPINION: Dairy farmers will be breathing easier thanks to the Government last month delivering a Christmas gift in the form of immigration reforms.
Arable growers are being invited to supply samples of their harvested crops as part of a project which uses an alternative approach to determining how well they are managing their biggest input - fertiliser.
OPINION: The end-of-year booze-up at the posh Northern Club in Auckland must have been a beauty, as the legal 'elite'…
OPINION: It divides opinion, but the House has passed the first reading of the Gene Technology Bill.