fbpx
Print this page
Wednesday, 21 September 2016 11:11

Slight gain in GDT

Written by 
The Global Dairy Trade Event 172 concluded with the GDT Price Index up 1.7%. The Global Dairy Trade Event 172 concluded with the GDT Price Index up 1.7%.

The Global Dairy Trade Event 172 concluded with the GDT Price Index up 1.7%.

Whole milk powder (WMP) prices were largely unchanged (down 0.2%) after big moves in the three previous auctions.

ASB senior rural economist Nathan Penny says in view of the recent price surge, it is not surprising that dairy markets wanted to catch their breath. WMP prices, for example, have spiked 35.1% over August and September.

ASB is reaffirming its 2016/17 milk price forecast of $6/kgMS.

“However, the result was significantly below expectations heading in. Futures market pricing hinted at a circa 10% WMP lift prior to the auction.

“Aside from the WMP result, prices were firm. SMP, AMF and butter all lifted by between 3.0% and 4.6%. Indeed, seven out of eight products on offer recorded price gains.

“From here, we expect prices to consolidate over coming auctions as markets will need to take stock. In our view, we expect continued production weakness prices to lift prices again later in the season. On that basis, we look to NZ spring data that support or challenge our view that there is further global production weakness to come over 2016.”

Key results

AMF index up 4.6%, average price US$4,998/MT

Butter index up 3.6%, average price US$3,892/MT

BMP index up 7.0%, average price US$2,276/MT

Ched index up 2.2%, average price US$3,518/MT

LAC index up 3.7%, average price US$815/MT

RenCas index up 2.0%, average price US$6,893/MT

SMP index up 3.0%, average price US$2,293/MT

WMP index down 0.2%, average price US$2,782/MT

More like this

Dairy prices slip

Dairy prices pulled back a bit in the overnight Global Dairy Trade (GDT) auction and it’s mostly to do with New Zealand’s biggest market, China.

Optimism in the air

There is a feeling of optimism in the dairy industry, says Federated Farmers dairy section chair Richard McIntyre.

Dairy has 'turned a corner'

A leading farm accountant and consultant believes the dairy industry has turned a corner as the rural sector navigates a downturn.

Featured

National

Green but not much grass!

Dairy farmers in the lower North Island are working on protecting next season, according to Federated Farmers dairy chair Richard…

Council lifeline for A&P Show

Christchurch City Council and the Canterbury Agricultural and Pastoral Association (CAPA) have signed an agreement which will open more of…

Struggling? Give us a call

ASB head of rural banking Aidan Gent is encouraging farmers to speak to their banks when they are struggling.

Machinery & Products

Tractor, harvester IT comes of age

Over the last halfdecade, digital technology has appeared to be the “must-have” for tractor and machinery companies, who believe that…