Friday, July 8, 2022

Dairy product prices rise 2% in first GDT auction of 2013

The price of dairy products rose 2% in the first GlobalDairyTrade auction of 2013, recovering losses through the tail-end of last year.

The average winning trade-weighted price increased to US$3,357 per tonne from US$3,311/tonne at the Dec. 19 sale. The gains were led by a 4.7% boost in skim milk prices to US$3,572 per tonne. Prices for whole milk powder, which typically accounts for more than half the product sold, rose 1.6% to US$3,199 per tonne.

The total volume sold was 45,252 tonnes for a total of US$151.9 million across 13 rounds of bidding. That was down from 47,195 tonnes at the last auction.

Last month Fonterra Cooperative Group, which owns the GDT platform, raised its forecast farmgate payout and chief executive Theo Spierings said he expected dairy prices to rise in the first half of this year due to rising feed prices from unfavourable climatic conditions in the US, South America and Europe.

Anhydrous milk fat prices fell 0.2% to US$3,169 per tonne, rennet casein prices declined 0.8% to US$8,401 per tonne, and cheddar dropped 1.9% to US$3,458 a tonne.

The average price of butter milk powder advanced 1.1% to US$3,640 a tonne and milk protein concentrate gained 1.4% to US$6,122 per tonne. Lactose products haven't been sold at the auction since the Nov. 6 event.

There were 122 winning bidders from 164 participating bidders out of a pool of 743 qualifying bidders.

(c) BusinessDesk 2013

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