The recovery in the global dairy markets was halted at the latest Global Dairy Trade auction in New Zealand this afternoon. The auction is run by the world’s largest dairy exporter, Fonterra.
Following six successive increases at the Global Dairy Trade (GDT) auctions, prices were sent tumbling on Tuesday afternoon. The overall price was down 8.8%. The sharp fall comes off the back of 1.1% increase two weeks ago and 10.1% increase in the auction four weeks ago.
All dairy products which were offered at the auction suffered price falls.
The price for the most important product for New Zealand, whole milk powder (WMP), was down 9.6% and now stands at $2,928/tonne. Butter prices were down 9.4% to $3,555/tonne and cheddar prices were down 7.4% to $3,130/tonne while the largest price drop was seen for Rennet Casein which fell 15.2% to $7,507/tonne.
After this latest auction, the GDT index now stands at 880 and the index is on par with the auction of 5 August 2014.
There were a total of 134 participants in the auction, down from 160 two weeks ago and 20,258 metric tonnes of product was traded compared with 22,094 metric tonnes of traded product two weeks ago.
Kiwi under renewed outright pressure
- The NZD/USD has managed to print a new session low of NZD$0.7308 after the Fonterra global dairy trade (GDT) price index registered a fall of -8.8%. This was the first fall in dairy prices in six weeks.
- The pair is threatening key short-term support NZD$0.7305.
- Kiwi bears are not charging ahead dues to upcoming FOMC announcement.
- Techies see sub NZD$0.7305 with momentum opens the way to $0.7275/80, followed by 0.7175/90
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Dean Popplewell
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