World dairy prices steady after four consecutive drops

  • World dairy prices steady after four consecutive drops
    FarmIreland.t. E.
    World dairy prices remained at a regular auction on Wednesday after four consecutive drops.

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World dairy prices remained at a regular auction on Wednesday after four consecutive drops.

The GDT price index was unchanged, at an average selling price of $3,136 per ton, down 1.7 PC at the previous auction, in accordance with the events of GDT.

The amount of goods sold, however, jumped 33.9 PC compared to the previous auction to 34,076 thousand tons.

However, buyers from North Asia, including China heavy, held back.

“There were fewer buyers from North Asia at the event than in the (previous) events, but the presence of buyers from South-East Asia and Oceania, and South America were strong,” said Amy Castleton, dairy analyst at the headquarters of agri.

Economist rural Bank ASB’s Nathan penny said dairy prices are now moving below.

“Over the past 5 auctions, overall dairy prices fell 9pc, with whole milk powder prices for similar 8pcs. In particular, when the high price of butter fell heavily, down around 17pc over the period.

“Initially, when global demand remains firm, fall looks like it may be temporary. But it will not appear”, – he said,

Penny explained that the catalyst for change was the deterioration in U.S.-China trade tensions, but the mechanism by which dairy prices were already affected currencies.

“In particular, the Chinese yuan fell against not only the dollar but also on the markets.

“Falling yuan stingy the Chinese are buying power and reduce demand from our number one dairy market. In addition, as the us-China trade tensions be delayed, the more likely that the yuan to stay at this lower level, with Chinese dairy demand is likely to remain below too.

“This implies that lower demand equals lower prices,” he said.

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At the auction, whole milk powder, the most widely traded product, rose just 0.1 PC compared with expectations of derivatives markets by 0.8%.

Oil fell 3.2 PC, but cheddar and anhydrous milk fat eked out a 1.3 PC 1.2 PC and gets respectively.

Prices are falling in recent months, production at the world’s largest dairy exporter, New Zealand, began to grow after the weather troubles in the beginning of the year, suggesting that stronger than the overall global supply.

The auction results can affect the new Zealand dollar NZD as the dairy industry generates more than 7pc of gross domestic product.

KIWI Currency fell from around 0.6750 $to $0.6734 in the auction.

GDT event belongs to new Zealand’s fonterra Cooperative Group Ltd (FCG.NC), but operates independently from the dairy giant.

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