Home / Agriculture/ Global dairy prices fall, dragged down by whole milk powder

Global dairy prices fall, dragged down by whole milk powder


Comments / {{hitsCtrl.values.hits}} Views / Thursday, 8 November 2018 00:00

Facebook

 

WELLINGTON, REUTERS: Global dairy prices dropped for the sixth time in a row at a fortnightly auction early on Wednesday as prices for a key product, whole milk powder, sank to a two-year low. 

The GDT Price Index dipped 2%, with an average selling price of $ 2,851 a ton. The index had fallen 0.3% at the previous sale. 

Prices for whole milk powder (WMP), the most heavily traded item, fell 2.9% to its lowest since August 2016 and are expected to fall further on strong supply from New Zealand, the world’s largest dairy exporter. 

“The expectations of continued milk supply growth from NZ will put ongoing pressure on WMP prices,” AgriHQ Dairy Analyst Amy Castleton said in a research note. 

Butter prices also fell 1.7%, though skim milk powder eked out a 1.2% gain. 

The auction results can affect the New Zealand dollar as the dairy sector generates more than 7% of the nation’s gross domestic product. However, the currency was largely unaffected, trading just below one-month highs at $ 0.6665. 

GDT Events, which runs the auction, is owned by New Zealand’s Fonterra Co-operative Group but operates independently from the dairy giant. 

The New Zealand milk co-operative, which is owned by about 10,500 farmers, controls nearly a third of world dairy trade. 

US-listed CRA International Inc. is the trading manager for the twice-monthly Global Dairy Trade auction. 

A number of companies, including Dairy America and Murray Goulburn, use the platform to sell milk powder and other dairy products. A total of 42,412 tons was sold at the latest auction, an increase of 1.1% from the previous one, the auction platform said on its website.  The auctions are held twice a month, with the next one scheduled for 20 November.


Share This Article

Facebook Twitter


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Will the real JVP – Joke; Vital cog; Party poopers – please stand up?

Thursday, 22 August 2019

THE REDS ON THE GREEN HAVE TAKEN THE LIE OF THE LAND – and it is a highly-publicised stand, being the largest political rally of late. It’s a red flag planted claiming a space in the electoral pantheon, which is open to a plethora of interpretati


Amendment of People’s Bank Act: Any sinister motive?

Thursday, 22 August 2019

Parliament of Sri Lanka is scheduled to debate a Bill presented by the Minister of Finance on 24 May and Published as Bill No. 282 in the Gazette (erroneously dated as 9 July 2018). The legal effect of this Bill is stated as follows: nClause 2: This


Solar power can save country from blackouts

Thursday, 22 August 2019

The country faced country-wide power-cuts (except Colombo) in March when electricity generated failed to meet the demand, as the current Government failed to establish even a single major power generation plant or even award for construction. Heavy r


Emerging signals of a US recession

Wednesday, 21 August 2019

US stocks plunge on fears of an economic downturn Last week’s turbulence in financial markets was a reaction to the fresh evidence of a possible recession in the US economy. The Dow Jones Industrials Average dropped a whopping 800 points or 3% last


Columnists More

Special Report

SPECIAL REPORT MORE