Global Dairy Trade prices fall, after temporary lift
The latest Global Dairy Trade results has seen prices fall by 1.1pc, after a lift in prices in April.
Today's Global Dairy Trade auction saw prices slip 1.1pc after prices picked up at the previous auction - the first rise in prices since February.
The main drag on today's auction prices was rennet casein, which saw prices fall over 10pc. Skim milk powder prices were up 3.6pc while cheddar prices were up 3.1pc. Whole milk powder prices were down 1.5pc.
Some 19,500t of product was sold at today's auction at an average price of NZ$3,465/t and it comes on the back of falling dairy production in New Zealand.
The world’s top dairy exporter, New Zealand’s Fonterra Co-operative Group Ltd, said on Tuesday that milk production in its home market fell 1pc in March, a respite for global dairy prices.
The fall in production came despite an improvement in weather conditions, the dairy exporter said in a statement.
Last month, the Global Dairy Trade Price Index climbed 2.7pc, with an average selling price of $3,587 per tonne, in its latest auction.
The index had fallen for the fourth time in a row at the previous sale, edging down 0.6pc.
"All up, this auction result hints at strong global demand. And with NZ production still relatively weak heading into winter, we expect prices, if anything, to creep a little higher over coming months," said ASB rural economist Nathan Penny, in a research note.
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