{"id":57510,"date":"2023-02-08T12:40:16","date_gmt":"2023-02-07T23:40:16","guid":{"rendered":"https:\/\/www.farmersweekly.co.nz\/?p=57510"},"modified":"2023-02-08T12:40:17","modified_gmt":"2023-02-07T23:40:17","slug":"global-dairy-prices-bounce-in-latest-auction","status":"publish","type":"post","link":"https:\/\/www.farmersweekly.co.nz\/markets\/global-dairy-prices-bounce-in-latest-auction\/","title":{"rendered":"Global dairy prices bounce in latest auction"},"content":{"rendered":"Reading Time: <\/span> 2<\/span> minutes<\/span><\/span>\n

Global dairy prices rebounded in the overnight auction, snapping three consecutive falls. <\/p>\n\n\n\n

The Global Dairy Trade (GDT) index lifted 3.2%, boosted by a 3.8% gain in whole milk powder prices.<\/p>\n\n\n\n

Whole milk powder \u2013 which has the biggest influence on Fonterra\u2019s milk price \u2013 sold at an average US$3,329 ($5,288) a tonne.<\/p>\n\n\n\n

\u201cSignificant price gains across each contract period highlights that buyers were chasing product across the board,\u201d NZX dairy insights manager Stuart Davison said. <\/p>\n\n\n\n

The lift will add to the view that whole milk powder prices were expected to increase on the way into the second half of 2023, he said.<\/p>\n\n\n\n

BNZ senior markets strategist Jason Wong said it was a \u201cstrong result in light of the rebound in the US dollar\u201d.<\/p>\n\n\n\n

The result \u201creduces some of the downside risk that has been developing for this year\u2019s milk payout\u201d.<\/p>\n\n\n\n

Fonterra currently expects to pay its farmer shareholders a range of $8.50-to-$9.50 per kilogram of milk solids for the current season. <\/p>\n\n\n\n

According to Davison, north Asian participation boded well, with buyers taking nearly two-thirds of the total whole milk powder volume sold; 15% more of the total than the previous event and 5% more than at the equivalent event a year earlier. <\/p>\n\n\n\n

He also highlighted the 6.6% gain in butter prices, noting the last time butter made any gain was the November 1 auction, with prices sliding since then. <\/p>\n\n\n\n

The overnight gain almost recovered losses over the past three months, coming in at only US$123\/tonne, or 2.5%, short of that last price peak.<\/p>\n\n\n\n

Butter sold at an average US$4745 a tonne. <\/p>\n\n\n\n

A second consecutive gain for GDT cheddar prices was also a surprise, given global cheese prices largely declined over the past six weeks.<\/p>\n\n\n\n

Cheddar prices lifted 2.3% to US$4980 a tonne.<\/p>\n\n\n\n

February is \u201cset to be a volatile month for dairy commodity prices\u201d, Davison said. <\/p>\n\n\n\n

The sudden influx of trading registered on the SGX-NZX dairy derivatives market earlier in the week buoyed the premise that some market participants expected dairy prices to push higher over the coming months, he said.<\/p>\n\n\n\n

\u201cAs always, the next GDT result is the defining factor of truth in this market, only then will we know if this was a \u2018dead cat bounce\u2019 or a post-bottom market shifting higher.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"\u2018Buyers chasing product across the board\u2019 \u2013 NZX.\n","protected":false},"author":16,"featured_media":57511,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_FSMCFIC_featured_image_caption":"","_FSMCFIC_featured_image_nocaption":"","_FSMCFIC_featured_image_hide":"","footnotes":""},"categories":[2],"tags":[28,55],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t