Source: GDT
The auction sold 39,613 tonnes of product at an average price of US$2561/t.
Whole milk powder prices dropped 5.1%. The largest drop in price came from Contract 4 (-8.7%) which ships in March 2015. Other contracts dropped by between 4 – 5%.
The forward price curve is upward sloping, with prices ranging from US$2353/t in Contract 2 to US$2709/t in Contract 6.
The November contracts of WMP futures on the NZX Dairy Derivatives market have provisionally settled at US$2380/t, the average of Fonterra's C2 regular WMP prices in the two auctions this month.
The only other seller of WMP on GDT, Amul, did not sell any WMP this auction. The last time Amul sold WMP on GDT was in April.
Skim milk powder prices dropped by 5.7%. The largest drop in price came from the nearest contract, Contract 2 (-7%) which ships in January 2015.
The November contracts of SMP futures on the NZX Dairy Derivatives market have provisionally settled at US$2285/t, the average of Fonterra's C2 medium heat SMP prices in the two auctions this month.
European product from Arla sold at a US$40 – 140/t premium compared to equivalent Fonterra product. Meanwhile product sourced from India (Amul) continue to sell significantly higher, at a more than US$1500/t premium over Fonterra, though this is likely to be at relatively small volumes.
Anhydrous milkfat prices gained 6.1%, with the larger gains of 6 – 8% coming in Contracts 2 – 4, where more than 80% of the volume is offered. The November contracts of AMF futures on the NZX Dairy Derivatives market have provisionally settled at US$3305/t, the average of Fonterra's C2 regular 210kg drum AMF prices in the two auctions this month.
