GLOBAL – Global Dairy Trade (GDT) auction results released today show price declines in almost every product category except Cheddar cheese and lactose, writes Mary Ledman, Sara Dorland, Sarina Sharp and Karen Endres on 1 May 2012.
Anhydrous Milkfat posted the largest decrease, -13.6 per cent to $2,852/MT or $1.29/lb. vs. the previous bi-monthly auction. AMF was offered in each month, July through November 2012. The July contract closed at the lowest level, $2,706/MT or $1.23/lb., while the November contract settled at $3,125/MT or $1.42/lb.
Skim milk powder (SMP) was offered in each month, June through November 2012 but not from all suppliers. Low Heat Regular SMP, supplied by US based Dairy America, was only offered in the June and July contract periods at $2,500/MT or $1.13/lb.
Danish supplier, Arla Foods offered Medium Heat Regular SMP also at $2,500/MT in the July contract. SMP prices increased in later contract periods.
Fonterra supplied the highest priced Low Heat SMP for November delivery at $2,965/MT or $1.34/lb. Cheddar cheese and lactose prices increased 3.1 per cent and 3.0 per cent, respectively. Fonterra Cheddar cheese delivered in July closed at $2,800/MT or $1.27/lb.; however, product for August delivery settled at $4,220/MT or $1.91/lb. on very small volume of 150 MT, or 330,700 lbs.
CME spot Cheddar cheese trading was very active today as 16 loads of cheese traded. The spot block market closed unchanged at $1.5350/lb. while the barrel market settled 3.7¢ higher at $1.4650/lb. Double-digits gains were posted in Class III futures MAY through SEP after the spot cheese market.
http://www.thedairysite.com/news/38360/global-dairy-trade-auction-results-mixed
