Dairy commodity prices eased another 1.3% at the September 18 Global Dairy Trade Event (GDT). Prices were down for all commodities except rennet casein.
Whole milk powder (WMP) saw a 1.8% fall. The price for regular grade WMP to ship in November fell 2.2%, less than anticipated. Ahead of the event the NZX Dairy Derivatives market expected a 4.7% drop in this grade and contract of WMP.
Last week Fonterra lifted its 12 month WMP offer volumes by 20,450t, with the increases occurring through the October, November and December GDT events.
WMP prices were therefore expected to come down due to the supply pressure.
There was 5% more WMP sold at this event than at the September 4 event. This includes a lift in volume purchased by North Asian buyers, though most regions which purchased WMP at this event bought more than they did last time.
Skim milk powder (SMP) prices fell 1.1%. Medium heat SMP to ship in November fell 2.8%. The Derivatives market had expected a 4% lift in this grade and contract of SMP ahead of the event. Prices did lift for NZ SMP to ship in February and March, indicating buyers don’t need SMP urgently but there is some longer term demand for this commodity.
Butter prices were virtually unchanged, easing just 0.1% overall. Unsalted butter to ship in November lifted 1.5%. This was slightly behind expectations, with the Derivatives market expecting a 2.4% lift in this grade and contract of butter ahead of the event. However, this is the first lift since June in the price for unsalted butter to ship in two months’ time.
Anhydrous milkfat (AMF) eased 0.6%. Regular grade AMF to ship in November came down 0.9%. The Derivatives market had expected a 2.5% lift in this grade and contract of AMF.