Average prices of dairy products extended their slide for a seventh straight sale at Fonterra Cooperative Group’s latest online auction, to reach a 13-month low.
The GDT-TWI Price Index fell 2.1%, according to results posted on the globalDairyTrade auction website.
The average winning price fell to US$3,499 a metric tonne, the lowest since August last year, when prices reached US$3,080 a tonne.
New Zealand’s terms of trade reached a 37-year high in the second quarter, partly reflecting exports of dairy products though Fonterra has been predicting prices would come off their peaks amid volatile global markets and increased Northern Hemisphere supply.
Earlier this month the cooperative reiterated its forecast for a lower farmer payout in 2012 from this year’s record amount.
Whole milk powder rose 1.1% to US$3,345 a tonne in the latest sale. Skim milk powder dropped 6.2% to US$3,230. Anhydrous milk fat sank 11% to US$3,846 a tonne and milk protein concentrate rose 6.7% to US$6,692 a tonne. Rennet casein fell 7.6% to US$8,828 a tonne. Butter milk powder rose 0.2% to US$2,985 a tonne and cheddar gained 0.6% to US$4,049 a tonne.
There were 133 winning bidders from 155 participants over 11 rounds. The platform has 417 qualified bidders, up from 387 at the last auction.
BusinessDesk
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5 Comments
Wow, have a read of this, no wonder consumption is collapsing CRASH 2: CHINA FINGERS BNP PARIBAS AS THE WEAK LINK Beijing stops credit line to French bank as mistrust goes worldwide
The Bank of China Ltd. has told BNP Paribas that it has put a stop on further trade with the bank in Asian markets, amid broader investor concerns over Europe’s debt woes. It told BNP Paribas (and UBS) that they had reached the limits of their trading credit lines; having notified the banks about its decision last week, the stop to further trading began yesterday (Monday 19th September).
and then
http://www.telegraph.co.uk/finance/newsbysector/industry/mining/8776275…
Just reminding us how the markets for agriculture work,
http://www.theecologist.org/News/news_analysis/1045181/banks_should_end…
http://www.theecologist.org/News/news_analysis/1045180/how_goldman_sach…
I note that Fonterra has as of this auction stopped providing data on the volumes of product available at auction for each contract (minimum and maximum) which they did provide up to and including the auction of the 07/09/11.
On that basis I suspect price rises at this auction have been influenced by a reduction to the volume on offer from those forecast and expected. In other words, supply and price are being manipulated and the information hidden.
Andrewj, your reminder last night regards propaganda and "perception management" was timely:
http://www.interest.co.nz/news/55509/new-zealand-banks-robust-well-regu…
http://www.oftwominds.com/blogsept11/perception-management9-11.html
Dairy America is due to join GdT and given their comments below volumes may be seen to be 'commercially sensitive information'.
“Global Dairy Trade’s open trading platform provides us with the opportunity to establish our export business independently and have access to worldwide bidding demand on our first day of business," says DairyAmerica chief executive Rich Lewis.
He says going forward, the company will manage a "significant" proportion of its export business through the website rather than through distributor and reseller agreements.
http://idealog.co.nz/news/2011/07/us-dairy-join-fonterras-dairy-auction…
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