Global dairy prices were flat at a fortnightly auction held early on Wednesday, after four consecutive falls.
The GDT Price Index was unchanged, with an average selling price of $3,136 per tonne, having fallen 1.7% at the previous sale, according to GDT Events.
The amount of product sold, however, jumped 33.9%, compared with the previous auction, to a total of 34,076 tonnes. Nevertheless, buyers from North Asia, including heavyweight China, held back.
Asian Buyers
"There were fewer buyers from North Asia at this event than at the [previous] event, but the presence of buyers from South-East Asia and Oceania, and from South America, was strong," said Amy Castleton, a dairy analyst at Agri HQ.
Whole-milk powder, the most widely traded product, rose just 0.1%, compared with derivatives markets expectations of a 0.8% gain. Butter fell by 3.2%, but Cheddar and anhydrous milk fat eked out 1.3% and 1.2% gains, respectively.
Prices have been falling in recent months, as production in the world's biggest dairy exporter, New Zealand, started to pick up after weather-related woes earlier in the year, suggesting stronger global supply.
The auction results can affect the New Zealand dollar, as the dairy sector generates more than 7% of the nation's gross domestic product.
GDT Events is owned by New Zealand’s Fonterra Co-operative Group Ltd, but operates independently from the dairy giant.
US-listed CRA International, Inc. is the trading manager for the Global Dairy Trade auction.
A number of companies, including Dairy America and Murray Goulburn, use the platform to sell milk powder and other dairy products. The next auction is scheduled for 21 August.
News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.
