Wednesday, 07 August 2019 09:15

Dairy prices fall

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Dairy prices fell overnight in Global Dairy Trade auction, reversing the lift in the previous event. Dairy prices fell overnight in Global Dairy Trade auction, reversing the lift in the previous event.

Dairy prices fell overnight in Global Dairy Trade (GDT) auction, reversing the lift in the previous event.

The GDT price index was down 2.6%, compared to the previous auction, which had seen a 2.7% lift in the price index.

Worryingly for farmers, there was a 1.7% fall in whole milk powder prices. Prices for AMF and butter were also down, falling by more than 5%.

Westpac economists note that although not a large decline, one possible explanation could be China’s weakening of its currency in response to the US-China trade war.

Key results

AMF index down 5.1%, average price US$5,246/MT

Butter index down 5.5%, average price US$4,165/MT

BMP index down 5.6%, average price US$2,405/MT

Ched index down 2.0%, average price US$3,838/MT

LAC index down 11.5%, average price US$767/MT

RenCas index down 1.3%, average price US$6,885/MT

SMP index down 1.6%, average price US$2,482/MT

SWP index not available, average price not available

WMP index down 1.7%, average price US$3,039/MT

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There was a silver lining to the fourth straight drop in global dairy prices last week: demand in China is recovering.

Dairy fundamentals looking good

Independent economist Cameron Bagrie says dairy fundamentals are looking pretty good, despite the GDT dropping in the past three auctions.

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