{"id":66512,"date":"2023-07-07T10:18:47","date_gmt":"2023-07-06T22:18:47","guid":{"rendered":"https:\/\/www.farmersweekly.co.nz\/?p=66512"},"modified":"2023-07-07T10:18:48","modified_gmt":"2023-07-06T22:18:48","slug":"dairy-prices-slip-on-butter-slide","status":"publish","type":"post","link":"https:\/\/www.farmersweekly.co.nz\/markets\/dairy-prices-slip-on-butter-slide\/","title":{"rendered":"Dairy prices slip on butter slide"},"content":{"rendered":"Reading Time: <\/span> < 1<\/span> minute<\/span><\/span>\n

Global Dairy Trade prices have suffered their second-largest drop of 2023, pulled down by 10% off butter and 6% off skim milk powder.<\/p>\n\n\n\n

The butter slide was unexpected after prices for the product had risen 17% during April, May and June.<\/p>\n\n\n\n

The GDT index fell 3.3% in the first July auction and whole milk powder was a stabilising influence, dropping only 0.4%.<\/p>\n\n\n\n

After a mini rally in April and May, GDT prices have fallen to their lowest level since late 2020, raising concerns about the ability of dairy companies to deliver $8\/kg milksolids at the farmgate.<\/p>\n\n\n\n

Westpac economist Paul Clark said the futures market had been anticipating a 4% drop in WMP so the minus 0.4% outcome was better than expected.<\/p>\n\n\n\n

But the GDT results did little to set the course for the dairy commodities market.<\/p>\n\n\n\n

\u201cFor now, still soft global dairy demand and soft global dairy production are weighing on prices.<\/p>\n\n\n\n

\u201cThat said, an expected rebound in Chinese demand later in the year will hopefully provide some price support.\u201d<\/p>\n\n\n\n

For the time being Westpac maintained its 2024 season milk price forecast at $8.90.<\/p>\n\n\n\n

ASB economist Nat Keall said he remained conservative on the dairy market outlook in the absence of Chinese demand and the supply picture looking stringer.<\/p>\n\n\n\n

His farmgate milk priced prediction is only $7.25 and that is being helped by a slightly weak NZ dollar.<\/p>\n\n\n\n

ANZ agri economist Susan Kilsby said weak Chinese demand is showing up in WMP prices and those for anhydrous milk fat, where China is NZ\u2019s biggest market.<\/p>\n\n\n\n

The ANX World Commodity Price Index fell 2.3% in June, dragged down by beef, lamb and log prices. <\/p>\n","protected":false},"excerpt":{"rendered":"After mini rally, GDT prices fall to lowest level since late 2020.\n","protected":false},"author":22,"featured_media":604,"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":[28,55,97],"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\n\t\t