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Market prices for dairy commodities move sharply higher, reversing a long trend down, just days after Fonterra cuts forecast

Rural News
Market prices for dairy commodities move sharply higher, reversing a long trend down, just days after Fonterra cuts forecast
31st Aug 12, 8:47am by David Chaston

The latest market price monitoring of dairy commodity pricing shows a sharp rise across the board.

The USDA 'Oceania' price series indicates rising prices in US dollars, and with the recent fall in the New Zealand dollar this is translating into a lift in prices in local currency as well.

Milk powders rose the sharpest, with skim milk powder increasing US$275/tonne or +9.4% in the past two weeks, and wholemilk powder prices rising US$225/tonne or +7.8% from mid month.

In NZ$ terms, skimmilk powder prices are up +10.1% and wholemilk powder prices rose +8.5%.

Butter prices rose US$175/tonne, or +6.7% in NZ dollars, while cheddar cheese was up US$150/tonne, or +5.0% in NZ$ terms.

Ironically, these market moves come just days after Fonterra lowered its 2012/13 price forecast, a move that it blamed mainly on the high NZ dollar.

more soon ...

Dairy prices

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5 Comments

by  Ralph  |  31st Aug 12, 3:45pm 1346384715

Amidst the commodities slowdown one has think that faster consumption style commodities like food and oil will do better than minerals that can be stock piled for a long time.  Especially once inflation finally gets a solid hold.

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by  Andrewj  |  31st Aug 12, 4:12pm 1346386338
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by  SimonP  |  31st Aug 12, 5:34pm 1346391293

Assuming their assets are still valued around $1.6 billion (have they been revalued?) that's a return on equity of about 1.7%

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by  Henry_Tull  |  31st Aug 12, 11:25pm 1346412308

DC take as long as you like....

 

Did you see what the coal blokes are saying:

The industry consensus was the market bottom remained “some way off,” CEO Don Elder said last week.

Today Elder said the dive in international coal prices from early July was expected by “virtually nobody”.

The current market downturn could last for a “relatively long” time, he said.

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by  Henry_Tull  |  5th Sep 12, 5:57pm 1346824676

Trading Event 75 was held on Tuesday, 4 September 2012

http://www.globaldairytrade.info/Results.aspx

 

Number of Qualified Bidders 717 Number of Participating Bidders 203 Number of Winning Bidders 143 Number of Bidding Rounds 16 Duration of Trading Event (hours:mins) 3:14 Minimum Supply (Total MT) 57,185 Maximum Supply (Total MT) 59,235 Quantity Sold (Winning MT) 58,808 Average Winning Price (USD/MT, FAS) $3,174 Change in GDT-TWI™ Price Index from Previous Event 6.0%

 

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