Dairy prices eased 2.3% in the latest GDT, settling to an average price of US$3630/T – the largest pricing slump felt on the platform since August last year.
It is the first decrease at the auction after six consecutive gains.
Skim milk powder had the largest drop, down 5.2% to US$2,640/T while whole milk powder fell 2.8% with an average price of US$3,286/T.
NZX dairy analyst Rosalind Crickett said the largest price decreases came in the immediate to near-term contracts, indicating the weakest demand for milk powder products.
There were small gains of 1.4% and 1% for AMF and butter, reaching US$6637/T and US$6461/T respectively. BMP lifted 3.7% at US$2504/T, cheddar prices were up 4% to US$4277/T, lactose jumped 4.8% to US$818/T and mozzarella fell 0.4% to US$3945/T.
Crickett said the results of the latest event on Tuesday March 5 were very much in line with expectations, given the softer pricing indications on the NZX-SGX derivatives market.
While SMP prices had the largest fall, Crickett pointed out that the average price still sits well and truly above those seen through December-January.
North Asia was top buyer of both milk powders and butter, while the Middle East took out the top buyer’s spot of cheddar and southeast Asia/ Oceania for AMF.
“Seasonality will be key consideration moving forward as production in the southern hemisphere wraps up for the season, while it ramps up again in the north,” Crickett said.
