Dairy product prices fall 1.6% in GlobalDairyTrade auction

Dairy product prices fall 1.6% in GlobalDairyTrade auction, first decline in three sales

Dec. 21 (BusinessDesk) – Prices of dairy products fell for the first time in three sales on Fonterra Cooperative Group’s GlobalDairyTrade platform, with declines in most of the products on offer.

The GDT-TWI Price Index fell 1.6 percent compared to the last sale two weeks ago. The average winning price declined to US$3,688 a metric tonne from US$3,737 a tonne in the Dec. 6 sale. The price of whole milk powder declined 1.5 percent to US$3,589.

Prices of commodities have declined through much of December amid speculation global growth is faltering in the face of Europe’s debt crisis. The Thomson Reuters/Jefferies CRB Commodity Index of 19 commonly traded commodities touched a two-month low last week. Still, Fonterra this month raised its forecast payout to farmers for 2012, citing a ‘modest’ recovery in prices over the past two months.

The average winning price for skim milk powder declined 3.2 percent to US$3,312 a metric tonne. Among other products on offer, anhydrous milk fat rose 4.8 percent to US$4,183 a tonne while butter milk powder dropped 3.8 percent to US$3,280 a tonne.

Cheddar climbed 1 percent to US$3,601 a tonne and milk protein concentrate dropped 6.7 percent to US$5,860 a tonne. Rennet casein declined 6.9 percent to US$8,122 a tonne.

There were 119 winning bidders over 10 rounds, out of 156 participating bidders. The number of qualified bidders rose to 504 from 491 in the last sale two weeks ago.

(BusinessDesk)

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