Dairy prices dip 1.1pc in latest auction
PRICES of dairy products fell in the latest GlobalDairyTrade auction though volumes held up, extending the elevated levels that saw Fonterra report record sales last month.
The GDT Price Index, previously known as the GDT-TWI Price Index, fell 1.1 per cent compared to the last sale two weeks ago. The average winning price was US$4,891 a tonne compared to US$4,941 a tonne.
The total volume of dairy products sold at the latest auction fell to 53,479 tonnes from 56,173 tonnes two weeks ago, although it remains above the average sales volume this year of 33,744 tonnes. Fonterra, whose product dominates the platform, had record sales in August of a combined 109,664 tonnes, worth $685 million. This week Synlait Milk joined Fonterra and Westland Milk in hiking its forecast payout to farmers.
The average winning price of whole milk powder, the biggest product by volume, fell 1.7 per cent to US$5,058 a tonne. Skim milk powder fell 0.8 per cent to US$4,420 a tonne.
The price of anhydrous milk fat rose 3.1 per cent to US$5,109 a tonne and butter milk powder rose 0.3 per cent to US$4,566 a tonne. Butter rose 2.7 per cent to US$3,710 a tonne.
Cheddar fell 3.2 per cent to US$4,257 a tonne. Lactose sold at US$1,359 a tonne and milk protein concentrate fell 3.8 per cent to US$7,613 a tonne. Rennet casein fell 2.1 per cent to $9,864 a tonne.
There were 126 winning bidders over 10 rounds. There were 199 participating bidders out of a total number of qualified bidders of 873.