Saturday, March 30, 2024

Whole milk powder price down at GDT

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The Global Dairy Trade index fell 0.8% overnight with the price of whole milk powder down 3.3% to US$3022.
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The only products to rise were anhydrous milk fat up 4.4% to US$6885,skim milk powder up 1.4%to US$2218 and butter up 2.9% to US$5768.

Cheddar was down 3.8% toUS$4121, lactose lost 11.1% to US$869, rennet casein was down 8% to US$6104.

In all, 111 of the 160 bidders bought 21,171 tonnes of products.

Analysts said the NZX Dairy Derivatives market had indicated a 1.3% gain in the price of regular grade WMP to ship in August but it dropped 5.8%.

On average, prices for nearer-dated WMP contracts fell more than prices for later-dated ones – the WMP price to ship in November was up 1.7%.

WMP had been selling regularly over recent months so some buyers had enough for now. The quantity of WMP sold to north Asia was less than seen at recent auctions, AgriHQ dairy analyst Susan Kilsby said

While the number of winning bidders fell at the latest auction, there was a little more WMP sold than at the previous event and more than at the equivalent sale last year.

Cheddar prices fell from the height they reached at the June 6 auction.

However the average price was still comparatively high for cheddar in recent times.

The United States had record high stocks of cheese, some of which were expected to make it onto the export market.

In April the US exported 27% more cheese year-on-year, though most of the extra product went to Mexico.

Similarly, Europe was expected to focus more on regular cheese production now it was through its peak milk producing period.

And Fonterra last week said it would offer 300t more cheddar on GDT over the next year.

Anhydrous milk fat (AMF) and butter prices both lifted again, reflecting the ongoing strong demand for milk fat.

The prices for those two commodities on GDT were at a new record high.

Limited availability of milk fat products and strong demand were keeping prices strong though the Derivatives market indicated prices for both AMF and butter would ease overnight.

SMPprices continued to show some strength though the price for medium heat SMP to ship in August lifted a little less than expected. The price for that grade and contract lifted 1.2% while the Derivatives market had expected a 3.3% lift.

Oceania sourced product achieved a premium over European product. Prices for European SMP and US non-fat dry milk continued to lift, which provided support to Oceania prices.

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