Prices up on GlobalDairyTrade

The GDT-TWI™ rose 4.9% from the previous auction, it's biggest lift since the April 2 auction. The average price accross all products was US$4,828/t for the 37,948 tonnes that was sold.

Prices were down on average for Contract 1 (August delivery) though Fonterra did not offer any product on this contract. The largest rise on average was for product for September delivery, with prices lifting by an average of 7.3%.  The average prices also rose across the remaining contract periods, although there were declines for some products. Contracts 3 to 6, ranging from October through to Janurary 2014, had solid price rises between 3.5% and 5.3%. 

Whole Milk Powder (WMP)
WMP prices were up 7.7% on average accross all contracts, with the biggest lift being a 12.5% rise for Contract 2 (September delivery). Fonterra Regular-NZ WMP traded at $5,370/tonne for Contract 2, up US$600/t on the previous auction. Similar price increases were recorded for Instant and UHT product as well. Amul product, in just its fourth GDT auction, sold at slightly weaker prices than the previous event, with Contract 2 Amul Regular WMP prices down 1% to $4,175/t.  Fonterra was the only seller in Contracts 3-6 and prices were up across all of these contracts.

Skim Milk Powder (SMP)
SMP had average rises of 3.3% across Contracts 1 to 5, while no product was sold in Contract 6. Fonterra prices were up across all contract periods, by 3-7%, with the largest gains in November and December contracts. Fonterra Medium Heat – NZ SMP in Contract 2 averaged US$4,890/t, up US$165/t from the previous event. DairyAmerica and Amul SMP traded at similar levels to a fortnight ago. DairyAmerica's Medium Heat Regular SMP in Contract 2 sold at US$4,075/t and Amul's product traded at US$3,405.

Anhydrous Milkfat (AMF)
AMF prices were much more variable than other commodities at this GDT auction. Although they had a 3.6% rise on average, prices swung between a 7.6% rise in Contract 4 and a 6.3% drop in Contract 6. Regular 210kg drum – NZ/AU continued the gains made at the previous auction, rising in price by about $300/t for Contracts 4 and 5, though corrected downwards by 4% in contract 6, after a US$435/t rise at the previous auction.

Other products
Cheddar prices lifted on average, with prices unchanged for October delivery but up 3% for November. Rennet Casein was down 5% on average, losing value in Contracts 2 to 4. Butter prices were mixed, but averaged slightly lower than a fortnight ago, at US$3,693/t.

Table: Average winning prices at July 16 GDT auction (USD/MT, FAS)