Dairy Prices Rise at Global Auction
For the first time in two months international milk prices rose at global auction. Fonterra’s Global Dairy Trade-Trade Weighted Index, which covers a range of 30 products and contract periods on offer, rose 1.5%, with an average selling price of $3,277 per ton. This was the first rise in the index since mid-January.
Products that had the largest rise in prices were cheese, anhydrous milk fat, and milk protein concentrate, with small falls for skim and whole milk powder.
The index has fallen around 30% since hitting a near four-year peak in March 2011 as global commodity prices have retreated. The next Global Dairy Trade auction will be held on April 17th.
The co-operative last week reaffirmed its payout forecast range for the 2011/2012 season of NZ$6.75-NZ$6.85 a kg of milk solids, and said it planned to expand its business by investing in milk production and dairy consumables in overseas markets. The payout for the 2010/11 season was a record NZ$8.25 a kilo on record production and sales.
Additional Product Results from the April 3rd GlobalDairyTrade auction
Whole Milk Powder (WMP)
Average Price (USD/MT FAS) $3,227/ ton ($1.46 / lb.) – down 2.8% from the March 20th auction
Anhydrous Milk Fat (AMF)
Average Price (USD/MT FAS) $3,583 ton ($1.62 / lb.) – up 8.35% from March 20th auction
Skim Milk Powder (SMP)
Average Price (USD/MT FAS) $3,078/ ton ($1.40 / lb.) – down 0.8% from March 20th auction
Milk Protein Concentrate (MPC70)
Average Price (USD/MT FAS) $4,705/ ton ($2.13 / lb.) – up 13.1% from March 20th auction
Rennet Casein (RenCas)
Average Price (USD/MT FAS) $7,290/ ton ($3.31 / lb.) – up 13.8% from March 20th auction
Cheddar
Average Price (USD/MT FAS) $3,371/ ton ($1.53/lb.) – up 13.2% from March 20th auction
