#TGD: Dairy Product Prices Rise in Final Auction of 2012

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Dairy prices finished 2012 on a, broadly, positive note at GlobalDairyTrade, amid expectations of values making a firm start to next year, and of a retreat in southern hemisphere production.The last GlobalDairyTrade auction of the year ended with values up 1.1% from the last event, two weeks ago, with cheddar cheese prices leading the increase, with a rise of 6.9%.
Rennet casein appreciated by 4.9%, with smaller increases in values of skim milk powder and milk protein concentrates.
The gains more than offset a 0.6% decline in the value of whole milk powder, which accounts for the bulk of volumes sold at the auctions. However, whole milk powder prices fell for the fourth straight auction to $3,147, which is the lowest price in three months.
The result took values to within 2% of where they started 2012, although the flat finish defies sizeable volatility within the year.
Values had fallen more than 20% by May to their lowest in nearly three years, depressed by a strong finish to the southern hemisphere season, particularly in New Zealand.
Prices staged a recovery as high feed prices, and poor weather, depressed output in major northern hemisphere producers, including the European Union and the US.
Among major products, prices of whole milk powder – of which New Zealand is an especially important producer, largely for the Chinese market – fell by 8.1% over the year, while values of cheddar, a largely northern hemisphere product, rose by 8.2%.
Rabobank said it forecast a further rise in values heading into 2013, when «tighter supply dynamics continue to favor an upward trend for dairy commodity prices.
«But the strength of demand will be critical to determining how strong the price movements will be.
«Purchasing from key importing regions continues to provide activity, but overall is best described as solid with not current level of urgency apparent.
«Buyers have had ample opportunity to fill inventory pipelines at reasonable prices over recent months.»
However, the early signs for spring ramp-up in northern hemisphere production will also play a big role, as well as the strength in the remaining peak period of the Australian and New Zealand seasons.
While New Zealand’s 2012-13 season got off to a strong start, many commentators believe it will see a softer close. New Zealand’s Ministry of Primary Industries said that «assuming a return to average climatic conditions, milk production is expected to remain at 2011-12 levels in the current season,
«While this equates to zero growth relative to the previous season it nonetheless reflects high milk production relative to historic levels.»
Agrifax analysts said: «With official data showing milk collection to be 8% ahead across the first four months of the season… the ministry must by factoring in a significant slowdown in milk output during the latter part of the milk production season.»
There were 145 winning bidders over 11 rounds, with 195 participating bidders out of a total number of qualified bidders of 737. The next auction will be held on January 2, 2013.
Source: ADPI

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Así lo expresó Domingo Possetto, secretario de la seccional Rafaela, quien además, afirmó que a los productores «habitualmente los ignoran los gobiernos». Además, reconoció la labor de los empresarios de las firmas locales y aseguró que están «esperanzados» con la negociación entre SanCor y Adecoagro.

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