Friday, March 29, 2024

WMP lifts as GDT falters

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Last night’s Global Dairy Trade auction gave a poor indication for the season with most prices falling as volumes increased, AgriHQ dairy analyst Susan Kilsby said
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Prices for most commodities fell and the overall price index was down 1.6% to an average of US$3343/t.

“The market struggled to absorb the extra volume of product available on GDT which does not bode well for the coming months when offer volumes continue to lift in line with the seasonal lift in NZ's milk supply,” she said.

The gloss came off anhydrous milk fat and butter, both losing 4.9%.

The NZX Dairy Derivatives market predicted a 4% fall in the price of unsalted butter to ship in October but it lost 7.3%.

Regular grade AMF to ship in October was expected to lift 1.1% but dropped 7.7%.

But though milk fat prices fell they were still quite high historically, Kilsby said.

The falls indicated buyers were starting to resist paying such high prices for milk fats.

Skim milk powder prices fell 3%. Medium heat SMP to ship in October was down 4%. European product managed to gain a small premium over NZ product. Contract 2 medium heat SMP from NZ sold for US$1920/t while the SMP supplied by Arla sold for US$1990/t to US$2000/t.

Whole milk powder and butter milk powder made small gains.

The WMP Price Index lifted 1.3%. The derivatives market had indicated a 3.4% lift in the price of regular grade WMP to ship in October but it lifted just 0.6%.

The BMP Price Index was up just 0.4%. This increase was led by a lift in prices for product sold by Arla though European BMP sold at a lower price than Fonterra’s BMP. Fonterra’s UHT grade BMP to ship in October sold at its starting price, which was down 15% from the last time it was offered.

Cheddar prices fell 4.8%, lactose was down 4.3% and rennet casein lost 4.4%.

There were 129 winning bidders, an increase on the 115 winning bidders at the July 18 auction. There were more winning bidders from north Asia, southeast Asia, Oceania and the Middle East.

A total of 32,768t of products were sold, 23% more than at the July 18 sale when 22,688t was traded.

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