Wednesday, 04 July 2018 08:39

Dairy prices tumble

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Dairy prices tumbled overnight. Dairy prices tumbled overnight.

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

The GDT price index dropped 5% compared to the previous auction.

Surprisingly, whole milk powder prices dropped a whopping 7.3% to US$2905/MT.

According to Westpac head of NZ Strategy Imre Speizer, last night’s GDT result was “a decent surprise relative to futures market predictions of a 1% fall”. 

“One reason could be trade war fears, with local production increases a weaker secondary explanation,” he says.

Key results

AMF index down 1.7%, average price US$5,937/MT

Butter index down 4.0%, average price US$5,390/MT

BMP index up 6.4%, average price US$2,480/MT

Ched index down 4.3%, average price US$3,713/MT

LAC index not available, average price not available

RenCas index up 3.6%, average price US$5,089/MT

SMP index down 4.6%, average price US$1,913/MT

SWP index not available, average price not available

WMP index down 7.3%, average price US$2,905/MT

 

More like this

GDT price jump surprises economists

The 2.7% jump in last week’s Global Dairy Trade overall price index – with a 3.6% bounce in whole milk powder – was a surprise, economists agree.

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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