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GDT prices decline for second time

NZ Newswire logoNZ Newswire 3/01/2017 Margreet Dietz

Dairy product prices have fallen at Fonterra's GlobalDairyTrade auction, sliding for a second consecutive auction as whole milk powder prices unexpectedly sank amid increased volume on offer.

The GDT price index fell 3.9 per cent to $US3463 ($NZ4991), down from $US3656 at the previous auction two weeks ago. Some 22,396 tonnes of product was sold, edging up from 22,321 tonnes at the previous auction.

Whole milk powder dropped 7.7 per cent to $US3294 a tonne.

Fonterra increased its offer volumes of whole milk powder on GDT.

"It appears there simply weren't enough buyers willing to pay any higher prices to absorb the extra supply on offer," AgriHQ dairy analyst Susan Kilsby said in a note.

Fonterra made 12,850 tonnes of whole milk powder available, Ms Kilsby noted, adding that there was 6 per cent more whole milk powder available for buyers than at the previous auction. Even so, however the volume available was still less than was offered at this time a year ago, she said.

On Wednesday morning's (NZT) auction, lactose fell 2.9 per cent to $US836 a tonne, while rennet casein declined 2.7 per cent to $US6234 a tonne.

Anhydrous milk fat slipped 0.6 per cent to $US5352 a tonne.

Meanwhile, butter rose 0.5 per cent to $US4308 a tonne, while cheddar added 1.4 per cent to $US3894 a tonne.

Skim milk powder gained 2.3 per cent $US2660 a tonne, while butter milk powder increased 4.5 percent to $US2670 a tonne.

There were 120 winning bidders out of 151 participating at the 13-round auction. The number of qualified bidders rose to 523, up from 520 at the previous auction.

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