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Dairy product prices slip

NZ NewswireNZ Newswire 3/05/2016 Margreet Dietz

Dairy product prices slipped as a gain in whole milk powder prices was offset by a decline in other products.

The GlobalDairyTrade price index fell 1.4 per cent to $US2,203, down from $US2,263 at the previous auction two weeks ago.

That came despite the price of whole milk powder rising 0.7 per cent.

"The lift in whole milk powder prices on GDT was supported by the lower volumes on offer as we near the end of New Zealand's milk production season," AgriHQ dairy analyst Susan Kilsby said.

"The weakness in the other dairy commodities is not surprising given these commodities are influenced to a much greater degree by supply from the Northern Hemisphere," Ms Kilsby said.

"Milk production in both Europe and the United States remains very strong."

There was just 7,500 tonnes of whole milk powder available at the GDT event, compared with 20,700 tonnes a year ago, according to Ms Kilsby.

Butter milk powder and butter both dropped 5.5 per cent while skim milk powder, lactose and anhydrous milk fat decline.

Meanwhile, cheddar rose 1.8 per cent and rennet casein gained to 3.5 per cent.

The New Zealand dollar last traded at 69.25 US cents at about 12.55pm in New York, compared with 70.20 US cents at 5pm in Wellington the previous day.

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