Dairy prices fell 3.6% in this week’s GlobalDairyTrade event — the sixth consecutive auction in which prices have fallen and the largest fall since March. Whole milk powder prices fell 3%, while there were also price declines for cheddar (down 9.2%), skim milk powder (down 7%), butter (down 3.2%) and anhydrous milk fat (down 0.9%). The result was slightly weaker than expected, the futures market having predicted a roughly 2.5% fall in the whole milk powder price. At $US3864 ($NZ5506) per metric tonne the whole milk powder price was still 20% higher than at the corresponding time last year, Westpac industry economist Paul Clark said in the bank’s latest Dairy Update. Prices were moving ‘‘a shade faster’’ than the bank had previously expected, and the fact the fall came despite the fall in volumes offered was a bearish sign.

Source: Otago Daily Times July 07, 2021 14:48 UTC