Monday, February 26, 2024

Dairy prices rise in latest GDT

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Results more bullish than had been anticipated, analyst says.
The value of milk powder, butter and cheese exports increased by $170 million.
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Dairy prices continued their upward trend, lifting 2.3% in the latest GDT auction.

The second GDT Event 348 for 2024 saw average prices lift to US$3.493/t.

Prices across all product category groups were up apart from mozzarella, which fell 3.3% to US$3830/t.

NZX dairy analyst Rosalind Crickett said the results were more bullish than were initially anticipated.

However, the product increases are fairly in line with what was predicted when looking at where the SGX-NZX derivatives market had been trading prior to the latest auction.

Both milk powders were up despite the recent downward pricing movement seen at the last GDT Pulse auction. 

WMP was up 1.3% to an average price of US$3353/t and SMP rose on average 1.2% to US$$ 2638/t, the first increase its seen at a GDT Event since early December. 

Milk fats were the big winners at the latest auction with AMF having its steepest price increase in six auctions, rising 4.3% to US$5842/t. 

Butter also increased sharply, up 5.8% to US$5906/t and cheddar also rose a steady 1% overall.

Crickett said there was a change in buyers, with the Middle East being the largest purchaser of WMP. North Asia was still the top bidder of both SMP and butter. Southeast Asia/Oceania were the largest purchasers of cheddar. 

“With ongoing geopolitical tensions in the Red Sea and drought conditions in the Panama Canal increasing both delivery lead times and cost, we will be viewing regional buying activity with great interest,” Crickett said.

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