Average prices of dairy products fell for an eighth straight sale at Fonterra Cooperative Group’s latest online auction, tracking global commodities lower as Europe’s debt woes stoked concern the world economy is stumbling.
The GDT-TWI Price Index fell 1.6%, according to results posted on the globalDairyTrade auction website.
The average winning price fell to US$3,449 a metric tonne, the lowest since August last year, when prices reached US$3,080 a tonne.
The Thomson Reuters/Jefferies CRB Commodity Index fell 1.1% overnight and has declined to the lowest level since November.
The European Union has hinted that holders of Greek bonds will face bigger losses than expected and Goldman Sachs Group is now forecasting recessions for Germany and France, helping take the steam out of prices for raw materials.
Whole milk powder fell 0.7% to US$3,309 a tonne in the latest sale. Skim milk powder dropped 0.3% to US$3,193.
Anhydrous milk fat sank 3.5% to US$3,703 a tonne and milk protein concentrate rose 0.5% to US$6,713 a tonne. Rennet casein fell 7.2% to US$8,181 a tonne.
Butter milk powder rose 3.2% to US$3,075 a tonne and cheddar fell 4.9% to US$3,800 a tonne.
There were 129 winning bidders from 155 participants over 12 rounds.
The platform has 427 qualified bidders, up from 417 at the last auction.
(BusinessDesk)
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15 Comments
why, its in here, over production.
http://www.agrimoney.com/news/dairy-prices-drop-to-14-month-low-as-outp…
I think you will find it is more to do with lack of Chinese buying than over production Aj.
The increase in production in USA and Europe is expected. However the trigger price for those countries to make it uneconomic to increase production, is not far off. There will be a lag for when this takes effect and we see production dropping in USA and Europe.
The degree of increase in NZ production is the 'unexpected'. But we still have summer and autumn to come and the seasons not over until the autumn is done. ;-)
Wally, ever watched that film about the Californian family, the father is convinced there is going to be a nuclear war, when a bus crashes in front of the house he takes his family down to the bunker for 20 years till its safe to come out, his wife was a little pissed about the whole affair.
PDK is walking about like cro-magnum man, they have larger brains and look like us but are often ahead of their time.
I believe Cro- magnum mans inability to ajust to a consumer society was the last straw. Inability to consume along with a belief that there were too many people on earth and they must do their part saw them off.Personaly feeling responsible some how.When smaller brained homo sapiens like me have 5 children, would have had six but landing hard on the saddle pommel stopped me in my tracks.
Same comment Wally - there's been enough posted here, for you to know better.
http://www.elmhurst.edu/~chm/onlcourse/chm110/outlines/topic1.html
It's nothing to do with tax, it's to do with addressing limits.
You can read?
Fonterra says milk flows are up13% on the same time last year , putting pressure on collection, manufacturing and the supply chain across the country.
http://www.radionz.co.nz/news/rural/87382/big-rise-in-milk-production
When it comes to increasing the dairy product prices they often attribute it to the strong international commodity prices.
And now with dairy product prices dipping continously in the last 8 sales, can we see milk prices dropping in New Zealand?
Or will they try to hedge that risk by freezing milk prices to domestic suppliers in NZ for the next year too?
WFF - Your heart may be in the right place, but the paradigm your kind were spawned in, has gone and wented.
You, now, are just wasters of time. Your lot have one point of difference with the Nats (and for a while you didn't) which is 'who owns the essentials of life'?
The nats are lucky the media is too useless to bother to differentiate between things like Air NZ (which is a discretionary activity, needing oil post-peak) and the energy companies (needed regardless).
Last time I talked to Parker, he didn't get it. Nice man, but he didn't get it. Said "I can't believe we're running out of energy".
I prefer folk who investigate, rather than believe.
If you lot can't raise your game, please stand aside, you're just reducing our childrens chances, by wasting that time.
kind regards
Humbug PDK...you lot ought ot be out working 12 hour days and paying taxes so us retired workers can collect our pension. And enuff of the codswallop about there being no more energy. Moon's made of helium3 cheese and by 2111 the Chinese will be freighting the stuff back for use in the fusion reactors. Time you started your Mandarin nightclasses.
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