Dairy commodity prices rebounded at Fonterra’s latest auction, with the GlobalDairyTrade weighted average rising by 1.1% compared to the previous sale.
Rennet casein and cheddar lead the way, jumping by 6.9% and 4.9%, respectively, with cheddar showing a stronger trend for April 2013 and rennet casein firming in the nearby months. Skimmed milk powder (SMP) increased by 1.1%, with whole milk powder down by 0.6%. In all, 47,195t of product was sold at an average of $3,311/t, 20% more than the same time last year when prices averaged $3,688/t.
Back in the UK, DairyCo’s league table showed 21 price rises for October, with another 135 changes announced from November to February. “Conditions on farm remain difficult due to the unfavourable weather and forage quality issues,” said the report. “Daily deliveries remain around 2.2m/litres below last year, suggesting one of the lowest seasonal troughs in recent years.”
Tight supplies meant wholesale prices had increased for cream, butter and SMP, although trade remained thin. “Any small change to supply or demand is likely to have a relatively larger impact on price.”
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