Prices of dairy products fell for the first time in 10 GlobalDairyTrade auctions, led by the whole and skim milk powder as the volume on offer gained for a second session from a two-year low.
The GDT-TWI Price Index fell 7.3 percent compared to the last sale two weeks ago, the first decline this year. The average winning price fell to US$4,597 a tonne from US$4,968 a tonne in the previous sale, which was the highest on record on the GDT platform that began in July 2008. Whole milk powder, the biggest product by volume, fell 10.2 percent to US$4,731 a tonne.
Prices have halted their ascent as rains signalled the end of drought in some North Island regions and as economic data showed global growth may be faltering. The official PMI figures for China, out yesterday, showed the manufacturing measure undershot expectations in New Zealand’s biggest export market.
The total volume of dairy products sold at the latest auction rose to 17,237 tonnes from 15,019 tonnes two weeks ago. Fonterra is forecasting no increase in milk production this year as farmers dry off their herds.
The price of anhydrous milk fat fell 5.2 percent to US$4,675 a tonne and butter milk powder dropped 3.3 percent to US$4,500 a tonne. Butter declined 6.7 percent to US$4,409 a tonne and cheddar rose 3.4 percent to US$4,800 a tonne.
Lactose and milk protein concentrate weren’t offered. Rennet casein fell 3.1 percent to US$9,745 a tonne and skim milk powder fell 9.5 percent to US$4,280 a tonne.
There were 87 winning bidders over 10 rounds. There were 135 participating bidders out of a total number of qualified bidders of 802.