Wednesday, 03 October 2018 09:34

Dairy prices fall, again

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The GDT price index fell 1.9% overnight. The GDT price index fell 1.9% overnight.

Global dairy prices have fallen again and supply expectations out of New Zealand might be at play.

The Global Dairy Trade (GDT) price index fell 1.9% overnight, compared to the previous auction.

Whole milk powder price dropped 1.2% to US$2753/metric tonne, causing further downward pressure on forecast milk payouts.

Westpac’s head of NZ strategy, Imre Speizer says supply expectations may have weighed on the latest GDT auction.

He notes that growing conditions in NZ are good.

More milk out of NZ means more dairy products available on the global market, causing prices to dip.

Key results

AMF index down 4.4%, average price US$5,069/MT

Butter index down 5.9%, average price US$4,016/MT

BMP index up 3.6%, average price US$2,522/MT

Ched index down 1.2%, average price US$3,468/MT

LAC index up 0.6%, average price US$913/MT

RenCas index up 3.0%, average price US$5,552/MT

SMP index down 0.3%, average price US$1,982/MT

SWP index not available, average price not available

WMP index down 1.2%, average price US$2,753/MT

 

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Forecasts steady as demand holds

Banks are mainly holding firm on their forecasts of $7/kgMS despite last week’s flat Global Dairy Trade result – a small decline of 0.4% in the overall price index.

$7 payout still on the cards

Economists are still sticking to a 2019/20 season forecast of around $7/kgMS despite the 3.8% drop in the Global Dairy Trade overall price index last week.

Dairy prices tumble

Global dairy prices have tumbled in the latest Global Dairy Trade (GDT) event.

 
 

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