The AgriHQ price series for Oceania supplied product was stable for all commodities except skim milk powder (SMP). AgriHQ SMP firmed US$150/t to US$1750/t.
Fonterra’s offer volume for the September 1 GDT event are unchanged from the previous forecast. Prior to Fonterra’s announcement, there was some speculation that Fonterra may reduce its volumes further, but that did not occur. Prices at the next GDT auction are expected to firm due to quantities on offer being relatively small. Once again Fonterra will be offering 18,000t of whole milk powder at next week’s auction, which is half the volume offered at the equivalent auction a year ago.
In the European markets, price movements were mixed. Prices in Germany generally firmed. SMP prices were stable to lower. A further 2251t of SMP was entered into intervention last week. The majority of the product entered into the scheme was of Belgian origin. For the first time Germany entered product, with the remainder coming from Poland.
In the US butter and cheese eased on the CME market but prices for these commodities remain well above the global market. Non-fat dry milk is lights now trading in the US below the level at which SMP is currently priced on the NZX market.
