DAIRY commodity prices have remained stable despite the market’s lack of direction, according to an industry analyst.This was the second consecutive rise since three consecutive falls at auctions from May 1 to June 4.
At 38,890 tonnes, it was the largest quantity sold in the past 10 online auctions.
«Markets are staying fairly stable, buyers haven’t got all that much additional information to go on and have been fairly steady with their purchasing,» Dairy Australia analyst John Droppert said.
«It means something for us (Australia) that prices are staying resilient, but the reason they are fairly stable is – from a buyer’s perspective – there is not a whole lot of new information to go on.»
«No news is good news. In this case, it is good that they are staying where they are.»
Mr Droppert said buyers would have a clearer picture of the southern hemisphere milk production peak in the next month, as New Zealand and Australia edge closer to spring.
The price of whole milk powder increased 0.1 per cent to $US4757 a tonne.
The lowest price WMP contract for the next six months was October at $US4757 a tonne.
The average price of cheddar at last week’s auction was down 3.7 per cent to $US4395 a tonne.
United Dairyfarmers of Victoria president Kerry Callow said it was good news that prices remained stable but dairy farmers needed more money in their pockets as soon as possible.
«With the current restraints on finance, I would suggest the only true confidence farmers will get is when it starts flowing through to them,» Ms Callow said.
«There is light at the end of the tunnel and we can be optimistic but factories need to get any surplus cash out to suppliers if they have got it.»
All dairy factories announced opening prices for the current season, beginning July 1, last month.
The next Global Dairy Trade auction will be held on July 16.
Source: Weekly Times