Dairy product prices fall for fifth time in six auctions

The latest drop was led by declines in rennet casein and whole milk powder. Photo/File.

Dairy product prices fell at the Global Dairy Trade auction, led by declines in rennet casein and whole milk powder.

The GDT price index slid 1.1 percent from the previous auction two weeks ago. The average price was US$3,465 a tonne. Some 19,508 tonnes of product was sold, up from 19,262 tonnes two weeks ago.

Whole milk powder fell 1.5 percent to US$3,231 a tonne.

The decline followed Fonterra's revision of its full season milk production forecast on Tuesday.

"An indication of a little more product than previously expected being available before the end of the season may have meant buyers were less willing to pay more to secure whole milk powder at this event," Amy Castleton, AgriHQ dairy analyst, said in a note.

At the latest GDT auction, rennet casein slumped 10.5 percent to US$5,177 a tonne, while anhydrous milk fat retreated 1.9 percent to US$6,032 a tonne.

Butter was steady at US$5,647 a tonne.

Meanwhile, skim milk powder gained 3.6 percent to US$1,999 a tonne, while cheddar rose 3.1 percent to US$4,024 a tonne.

"Fresh skim milk powder has been difficult to get hold of globally so buyers seem to be willing to pay for it right now," according to Castleton.

Lactose added 0.6 percent to US$616 a tonne, while buttermilk powder advanced 0.5 percent to US$1,990 a tonne.

The New Zealand dollar last traded at 70.07 US cents as of 1.25pm in New York, compared with 70.35 US cents at the previous close in Wellington.

There were 97 winning bidders out of 150 participating at the 14-round auction. The number of registered bidders rose to 519, up from 518 at the previous auction.

- BusinessDesk