Dairy product prices recorded their sixth straight decline in the latest GlobalDairyTrade auction, returning to levels of a year ago and adding to expectations Fonterra will trim its forecast for a record milk payout.
The GDT price index fell 1.1 per cent to US$3,950 a tonne, from US$4,047 a tonne two weeks ago, the lowest since February 2013. Some 38,174 tonnes of product was sold, up from 36,549 tonnes at the previous auction.
The auction comes after figures showed the ANZ Commodity Price Index dropped to an eight-month low in April, led by dairy products, to round out the first annual decline since February last year. Fonterra is forecasting a record $8.65 per kilogram of milk solids for the 2013/14 season, based on its prediction three months ago.
Whole milk powder, the biggest product sold on the auction site by volume, fell 1.7 per cent to US$3,928 a tonne, a 14-month low. Rennet casein gained 6.8 per cent to US$11,353 a tonne and cheddar dropped 1.8 per cent to US$4,195 a tonne. Skim milk powder dropped 2.3 per cent to US$3,873 a tonne while butter gained 1.6 per cent to US$3,892 a tonne.
