Global dairy commodity prices fell to their lowest level since early December at Fonterra‘s latest auction on Tuesday (19 July).
Markets fell for the third sale in succession, to average US $3,796/t (£2357/t) for all products and trading periods. That was more than 5% down on GlobalDairyTrade‘s previous sale, when prices dropped by 6.7%. The weighted average is now 20% below the peak reached on 1 March, but is still 26% above the 10-year average.
Commentators said the results were proof that the steam was coming out of the dairy commodity market, amid signs that global economic growth was not as sturdy as expected.
The only commodity to show an increase in price was butter milk powder, which rose by 0.3% for October – December movement. Skimmed milk powder dropped by 5.2%, to average $3488/t (£2166/t) across all contract periods (September 2011 – March 2012). Whole milk powder fell by 4%, to $3475/t (£2157/t), while anhydrous milk fat dropped by 12.5%, to $4615/t (£2865/t). In total, 27,614t of product was sold, the greatest volume since mid-December.