Dairy commodity prices drop further

Dairy commodity prices dropped further at the Global Dairy Trade (GDT) event overnight, as the GDT Price Index eased 0.7%. Butter prices again saw the largest fall. The butter price index dropped 2.8%. Unsalted butter to ship in November fell 2.4%. Ahead of the event, the NZX Dairy Derivatives market had expected a 1% lift in this grade and contract of butter. Oceania butter prices are currently the lowest globally, so the market had been anticipating that they would find some support. Whole milk powder (WMP) prices fell 2.2% overall, while the price for regular grade WMP to ship in November was down 1.4%. The derivatives market had expected a small lift in this grade and contract of product, of 0.4%. There was a greater volume of WMP sold at this event – 33% more than at the August 21 event and 29% more than at the September 5, 2017 event. Skim milk powder (SMP) prices gained 2.2%. Medium heat SMP to ship in November lifted 1.8% – not quite as much as expected by the Derivatives market. The derivatives market expected a 5.6% rise in this grade and contract of SMP ahead of the event. Anhydrous milkfat (AMF) prices were virtually unchanged, lifting just 0.2%. Regular grade AMF to ship in November was up 0.1%. Again, this was not as much as expected by the derivatives market, which had anticipated a lift of 4.6% in this grade and contract of AMF ahead of the event. Article sourced from https://farmersweekly.co.nz
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