News | Rural
18 Mar 2018 5:07
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Sport
  • Weather
  • Finance
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Rural

    Pressure on dairy prices after GDT drop

    Dairy prices have fallen 3.5 per cent at Fonterra's GlobalDairyTrade auction with one analyst predicting there will be downward pressure on the farmgate payout.


    Dairy product prices have fallen for the third straight time at Fonterra's GlobalDairyTrade auction as whole milk powder extended its decline and skim milk powder recovered.

    The GDT price index fell 3.5 per cent from the previous auction two weeks ago and the average price to $US3105 ($NZ4,347) a tonne, the lowest since April. Some 35,072 tonnes of product was sold, down from 35,669 tonnes at the previous auction.

    Whole milk powder fell 5.5 per cent to $US2852 a tonne.

    The auction comes just a week after Fonterra reiterated its forecast 2017/18 payout of $6.75 per kilogram of milk solids.

    Chairman John Wilson says farmers enjoyed a good season in 2016/17 "after two seasons of unusually low milk prices" although the projection exceeds some analyst forecasts.

    "The fall in WMP prices will increase the pressure on milk price forecasts," said AgriHQ analyst Amy Castleton.

    AgriHQ had forecast a milk price of $6.36 but that would likely be revised lower this week, she said.

    North Asian buyers bought less product overall at this auction and it is likely that "Chinese buyers have now fulfilled their needs to land milk powder whilst the lower tariff rate applies from 1 January".

    Butter fell 3.6 per cent to $US5516 a tonne, matching the direction of November butter futures.

    Butter demand has soared this year, stoked by a surge in the popularity of natural products in first world markets like the US and Europe.

    At the latest GDT auction, rennet casein dropped 4 per cent to $US5465 a tonne while skim milk powder rose 1.2 per cent to $US1818. Cheddar fell 2.8 per cent to $US4001 and anhydrous milk fat rose 0.5 per cent to $US6894 .

    Butter milk powder rose 7.2 per cent to $US1931 a tonne and no prices were available for lactose.

    There were 133 winning bidders out of 165 participating at the 14-round auction. The number of qualified bidders rose to 554 from 544.


    © 2018 NZN, NZCity

     Other Rural News
     09 Mar: Skim milk price spike sparks GDT probe
     07 Mar: Dairy prices slip on increased supply
     05 Mar: Fonterra GM becomes ambassador to Korea
     22 Feb: Shares gain as investors take a2 above $9b
     22 Feb: A2 Milk a $10b company, eclipsing Fonterra
     21 Feb: A2 shares jump 25pc on Fonterra deal
     21 Feb: GDT prices slip for first time this year
     Top Stories

    Highlanders beat Crusaders in lively derby More...

    RBNZ expected to hold rate at review More...

     Today's News

    Labor declares victory in the Batman by-election 4:35

    Highlanders beat Crusaders in lively derby 21:55

    John Boyega misses "everything" about London 21:40

    Rugby League:
    Warriors still undefeated after NRL win 21:15

    Mandy Moore never wanted a "big" engagement ring 21:10

    Selena Gomez was "so scared she might die" when she had her kidney transplant 20:40

    Jennifer Lopez was once asked by a director to take her top off 20:10

    Queen Elizabeth has given her official blessing for Prince Harry and Meghan Markle to marry 19:40

    Rugby League:
    Hayne needs to find more ball: Arthur 19:35

    Law and Order:
    Hall wins Winter Paralympics gold for NZ 19:25

     News Search

    Power Search

    © 2018 New Zealand City Ltd