Dairy product prices plummeted at this morning’s Global Dairy Trade (GDT) auction, the main price index falling by 5.1 per cent as demand from North Asia slackened. The decline follows a smaller dip of 0.7 per cent a fortnight ago and a big jump in early July.
Whole milk powder prices dropped 7.5% overall. Regular grade WMP to ship in October fell 7.6%.
“This was a greater decline than the NZX Dairy Derivatives market had anticipated ahead of the event,” NZX dairy analyst Amy Castleton said.
“WMP prices fell 8.2% for product for next month shipping (shipping in September), indicating that buyers have filled their urgent needs for WMP. Buying from North Asia was up against the July 21 event, and up slightly against the equivalent event last year.
“There was also a slight increase in volume purchased by Africa compared to the last event, but less than the equivalent event last year. The Middle East bought less at this event than the equivalent event last year and both South/Central America and South East Asia/Oceania bought twice as much WMP than they had at the July 21 event, suggesting there is still some demand for WMP at this price point.”
Skim milk powder (SMP) fell 4.6% while butter prices dropped 2.8%, further losing gains made in early July.
Anhydrous milkfat (AMF) gained 3% while lactose saw a price rise of 5.7%, moving the average price to $1349/t. Cheddar prices dropped 5.3% with Africa buying the most.