Milk price down 2.1% in GDT auction

The trade weighted index was down 2.1% in this morning’s GlobalDairyTrade auction.

This was the second drop in a row after nine consecutive increases.

Prices were still well above the long term average.

 

The price of anhydrous milk fat was down.2%; butter dropped 12.4%; butter milk powder fell 5.1%;  rennet casein increased 3.7%; skim milk powder was down 2.8% and whole milk powder was down 1.7%.

 

 

GDT TWI drops 7.3%

The trade weighted price of milk in this morning’s GlobalDairyTrade auction dropped 7.3%.

The price is still well above the long term average.

 

The price of anhydrous milk fat dropped 5.2%; butter was down 6.7%; butter milk powder was down 3.3%; cheddar was down 3.4%; rennet casein was down 3.1%; skim milk powder fell 9.5%; and whole milk powder dropped 10.2%.

 

GDT price up .6%

The trade weighted index went up .6% in this morning’s GlobalDdairyTrade auction.

This is the ninth increase in a row and follows two big increases.

 

The price of anhydrous milk fat increased 5.9%; butter went up 6.8%; butter milk powder rose 1.3%; cheddar increased 3.4%; rennet casein was up by 7.2%; skim milk powder dropped 3.2%; and whole milk powder increased 2.4%.

 

Price up volume down in GDT auction

The trade weighted index increased 14.2% in Fonterra’s latest GlobalDairyTrade auction, however the volume sold dropped.

 

 

 

The price of anhydrous milk fat increased 6%; butter was down 2.7; butter milk was up .8%; cheddar increased 6.6%; rennet casein was up 4.4%; skim milk powder increased 27.8% and whole milk powder rose 7%.

Fonterra announced an increase in the farm milk price and dividend last week however, supply is lower because of the drought.

Anhydrous Milk Fat
Butter	n.a.	-2.4%	-2.6%	-3.9%	n.a.	n.a.	-2.7%
Butter Milk Powder (BMP)	n.a.	0.8%	n.a.	n.a.	n.a.	n.a.	0.8%
Cheddar (Ched)	n.a.	4.4%	10.3%	n.a.	n.a.	n.a.	6.6%
Lactose (LAC)	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.
Milk Protein Concentrate (MPC70)	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.
Rennet Casein (RenCas)	n.a.	4.4%	n.a.	n.a.	n.a.	n.a.	4.4%
Skim Milk Powder (SMP)	10.0%	24.5%	37.3%	27.8%	33.4%	42.3%	27.8%
Whole Milk Powder (WMP)	n.a.	12.8%	10.7%	18.6%	-7.9%	7.7%	7.0%
All Products (Trade-Weighted)	10.0%	16.0%	19.3%	21.6%	8.4%	21.8%	14.2%

Dairy prices up 14.8%

The trade weighted price of milk increased 14.8% in this morning’s GlobalDairyTrade auction.

This is the seventh increase in a row.

The price of anhydrous milk fat rose 16.3%; butter milk powder increased 8.6%; butter 11.5%; cheddar was up 13.7%; rennet casein gained 3.1% and skim milk powder rose 7.7%.

The price of whole milk powder gained 21.2%.

Whole milk is the main determinant for the payout.

Various pundits have suggested the payout will increase but it is very late in the season and volume is reduced because of the drought so I think the forecast payout is likely to remain unchanged.

Milk price up, dollar follows, drought declaration extended

The trade weighted index increased by 10.4% in this morning’s GlobalDairyTrade auction.

It was the sixth increase in a row.

Anhydrous milk fat was up 4.9%; butter increased 9.6%; butter milk fat was up 14.3%; cheddar increased8.3%; milk protein concentrate was up 11%; rennet casein increased 1.2%; skim milk powder increased 4.6% and whole milk powder was up 18%.

The price of whole milk powder is the major determinant of the payout so it it likely Fonterra could increase the farmgate price.That would be welcome news for the economy.

It would also be good news for North Island farmers who have been drying off cows and are facing much lower production because of the drought.It’s raining in Dunedin as I type and the temperature has dropped here which indicates a southerly change.

The rain will be welcome here and is needed even more further north where the area under official drought has been extended.

A state of drought has been officially declared in the South Auckland, Waikato, Bay of Plenty and Hawkes Bay regions today by the Minister for Primary Industries Nathan Guy.

The area covered includes the Auckland Council area south of the Harbour Bridge, and all of the Waikato, Bay of Plenty and Hawkes Bay Regional Council areas – including Coromandel and Taupo.

“This is recognition that farmers across the North Island are facing extremely difficult conditions, and follows on from the announcement of drought in Northland last week.

“The declaration of a medium-scale event means that extra Government funding will now be available to Rural Support Trusts. These organisations work closely with farmers, providing support and guidance in what is a very tough time.

“I realise these can be stressful times for rural families, and they need to know who to turn to for support.

“There will also be Rural Assistance Payments (RAPs) available from Work and Income, through the Ministry of Social Development. These are equivalent to the unemployment benefit and are available to those in extreme hardship.

“This decision has been made after consultation with the communities affected, and an assessment from the Ministry for Primary Industries.

“The entire North Island is dry, and I am keeping a close eye on other parts of the East Coast, as well as Wairarapa, Manawatu and Taranaki. Farmers badly need some rainfall during March and April to help prepare for the winter and set up for next spring.

“It’s important to note that support is available from Government agencies in all regions, even without a drought declaration. Farmers should contact IRD if they need help or flexibility with making tax payments, and standard hardship assistance is available from Work and Income.

“It’s great to see that banks are offering flexible finance options in these tough times as well.

“The conditions are also creating challenges for lifestyle block owners, and we urge them to take action early,” says Mr Guy.

Exporters were hoping the drought might help bring the dollar down a bit but it was back up over 83 cents this morning.

Dairy prices up, dollar down

The trade weighted index increased by 3.1% in this morning’s GlobalDairyTrade auction.

The price of anhydrous milk fat rose by 4%; buttermilk powder was up 4.1%; cheddar increased 1.8%; milk protein concentrate was down .2%; rennet casein was down .8%; skim milk powder was up 1% and the price of whole milk powder increased by 5.8%.

The price of whole milk powder has the most influence on the payout.

Usually when the milk price increases the dollar goes up too but today it has gone down a little after Reserve Bank Governor Graeme Wheeler talked about intervening in the currency market.

 

Milk up 2.4% in GDT auction

The trade weighted index increased 2.4% in this morning’s GlobalDairyTrade auction.

This is the fourth price gain in succession.

The increase is particularly good news as this was the first auction since news broke of tiny traces of the nitrogen inhibitor DCD being found in some milk products.Even though there was no food safety risk there was a perception risk but that doesn’t seem to have impacted on demand.Price changes:  Anydrous milk fat was up 7.2%; butter milk powder increased 3.7%; cheddar was down .1%; milk protein concentrate was up 1.2%; rennet casein increased 3.3%; skim milk powder increased .5% and whole milk powder, which has the biggest impact on the farm gate price, increased 5.4%.

Milk price up 1.1% in GDT auction

The trade weighted price index increased 1.1% in yesterday morning’s GlobalDairyTrade auction.

 

 

 

The price of anhydrous milk fat increased 2.4%; butter milk dropped 6.5%; cheddar was up .9%; milk protein concentrate was down 2%; rennet casein increased .8%; skim milk powder was down .3% and whole milk powder was up 2.8%.

GDT TWI up 2%

The trade weighted price for milk in Fonterra’s first GlobalDairyTrade auction of the year increased 2%.

The price of anyydrous milk fat was down .2%; buttermilk increased 1.1%; cheddar was down 1.9%; milk protein concentrate was up 1.4%; rennet casein was down .8%; skim milk powder increased by 4.7% and whole milk powder increased 1.6%.

 

 

Small price rise in final GDT auction of year

The trade weighted index increased 1.1% in Fonterra’s final GobalDairyTrade auction of the year.

The price of anhydrous milk fat was down .1%; butter milk powder was down .4%; cheddar was up 4.9%; milk protein concentrate increased by 1%; rennet casein was up 6.9%; skim milk powder rose 1.1 and whole milk powder dropped .6%.

 

Dairy prices down 2%

The trade weighted index for dairy products dropped 2% in this morning’s GlobalDairyTrade auction.

Prices are still above the 10 year average.

The price of anhydrous milk fat increased 3.7%; cheddar was down 2.4%, milk protein concentrate was down 1.2%, rennet casein was up .3%, skim milk powder was down 1% and whole milk powder was down 3.5%.

 

 

MIlk price up .7% in GDT auction

The trade-weighted price of dairy products increased .7% in this morning’s GlobalDairyTrade auction.

This is a reassuring trend after winter’s price drops.

Today’s results continue to keep the price above the long term average.

The price of anhydrous milk fat increased 1.2%, cheddar was up 12.4%; milk protein concentrate was down 1.8%; there was no change in the price for rennet casein; skim milk powder was down 1.7% and whole milk powder was down 1.9%.

 

 

 

 

 

GDT milk price up 1.8%

The trade weighted price went up 1.8% in this morning’s GlobalDairyTrade auction.

 

The price of anhydrous milk fat dropped 3.2%; butter milk increased 4.3%, cheddar dropped 9.9%, milk protein concentrate was up 4.2%, rennet casein was down 2.2%, skim milk powder was up .8% and whole milk powder increased 9.2%.

 

4th consecutive price rise in GDT auction

Can four consecutive increases in the trade weighted index for milk in the GlobalDairyTrade auction be called a trend?

Today’s 2.4% increase in the TWI takes the price above the 10 year average again.

The price of anhydrous milk fat fell 9.8%; butter milk powder was down 2%; cheddar was up 1%; the price of milk protein concentrate decreased by 3.4%; rennet casein increased 4.2%; skim milk powder was up by 4.7% and the price of whole milk powder had a 2% lift.

Milk price up 6% in GDT auction

The trade weighted index had a welcome 6% increase at the latest GlobalDairyTrade auction.

It might be too early to call it a trend but it is the third successive rise in the TWI.

The TWI is now back over the 10 year average.

The price of anhydrous milk fat increased by 11.8%; butter milk fat climbed 15.8%; cheddar was up 5.3%; lactose increased 5.2%; milk protein concentrate was up 15.5%; rennet casein rose 10.1%; skim milk powder was up 7.5% and whole milk powder increased by 4.3%.

Fonterra’s forecast cut not unexpected

The grapevine had been warning that Fonterra’s forecast payout might be cut so yesterday’s announcement from the company wasn’t unexpected.

Fonterra has announced a revised payout forecast range for the 2012/13 season of $5.65 – $5.75 before retentions for a fully shared up farmer, 30 cents down on the previous forecast range.

The revised forecast comprises a lower Fonterra Farmgate Milk Price of $5.25 per kilogram of milksolids, down from $5.50 and a lower forecast net profit after tax range of 40-50 cents, down from 45-55 cents per share.

Fonterra is required to consider its Farmgate Milk Price every quarter as a condition of the Dairy Industry Restructuring Act (DIRA).

Fonterra Chairman Sir Henry van der Heyden said most of the downward pressure on the Farmgate Milk Price forecast was due to the continuing strength of the New Zealand dollar.

“We’ve actually seen improving prices in recent GlobalDairyTrade (GDT) trading events, but the strength of the Kiwi dollar is eroding any gains,” said Sir Henry.

Overall, the GDT trade weighted index was up 4.1% over the past four events, underpinned by a 7.8% rise on August 15.  However, prices are low compared to a year ago and the New Zealand dollar remains strong against the US dollar. . .

The high dollar does erode returns for exporters but that’s not an excuse to tinker with the exchange rate as the Opposition would like to.

Lower export prices usually affect the currency and the dollar edged down yesterday.

While the short term outlook isn’t buoyant the drought in the USA is already having an impact on milk supply. Once farmers start culling, as they already are there, it  takes two or three season to rebuild herds so the next couple of seasons could bring better prices for farmers here.

Dairy price up 7.8%

This morning’s GlobalDairyTrade auction showed a welcome reversal of this year’s trend  for dairy prices with a 7.8% increase in the trade-weighted index.

The price paid for anhydrous milk fat increased 14%; buttermilk powder was up 10.2%; cheddar was up 8.8%; milk protein concentrate increased by 15.4%; rennet casein was up 4.7% skim milk powder increased 7.3% and whole milk powder increased by 7%.

This increase takes the price back to around the long term average.

One reason for the increase could be the drought in the USA. That usually depresses the price of beef because the market is flooded by farmers culling stock, and increases dairy prices because of a decrease in supply.

GDT milk price up

The trade-weighted price in this morning’s GlobalDairyTrade auction increased 3.5% from the price at the previous auction.

The drought in the USA which has pushed up theprice of grain might be a contributing factor.

The price of anhydrous milk fat decreased 1.3%, buttermilk fat fell 8.6%, cheddar increased 5.5%, lactose was up 3.6%, milk protein concentrate increased 11.5%, rennet casein was up by 7.3%, skim milk powder increased 3% and whole milk powder increased 3.5%.

Small fall in GDT milk price

The trade-weighted price of milk dropped .9% in this morning’s GlobalDairyTrade auction.

The price of anhydrous milk fat went up 3.3%; butter milk powder increases 7.2%; cheddar was down 2.9%; milk protein concentrate was up 2.4%; rennet casein was down 1.8%; skim milk powder was up 5.2% and whole milk powder was down 5.8%