Dairy prices fell 0.9%, ending a run of four gains, in the latest GlobalDairyTrade auction, led by declines in high-value rennet casein, cheddar and anhydrous milk fat.
Fonterra’s Global Dairy Trade-Trade Weighted Index, which covers a range of 30 products and contract periods on offer, fell to an average winning price of $3,285 a metric ton. It was the first fall in average prices since mid-July.
The price for whole milk powder, which accounts for about half of all products sold, rose 2.8% to $3,167 a ton across all contracts, the highest level since April 3.
The price for rennet casein was the biggest decliner, falling 9.5% to $7,361 a ton, followed by cheddar which dropped 7.4% to $3,300 and anhydrous milk fat, down 6.4% to $2,982.
The result comes a day after the ANZ Commodity Price Index showed prices for New Zealand-produced raw materials rallied in September in the biggest monthly gain in a year and a half. Dairy prices have been buoyed in recent months as droughts in North America sap the global supply.
In the latest GDT auction the price of skim milk powder fell 0.9% to $3,309 a ton, milk protein concentrate declined 1.5% to $5,879 and lactose slid 6.3% to $2,000. Butter milk powder gained 4% to $3,144.
There were 139 winning bidders across 13 rounds, with 164 participating bidders out of 723 qualifying bidders.
Some 59,307 tons of product was sold for some $194.8 million, making it the biggest auction since Fonterra Cooperative Group set up the platform in 2008.
The next Global Dairy trade auction will take place on October 16th.
Source: The National Business Review