Dairy product prices recorded their biggest decline since June last year in the latest GlobalDairyTrade auction, paced by whole and skim milk powder, suggesting New Zealand commodity prices may ease from record highs.
The GDT Price Index fell 4 per cent from the last sale two weeks ago. The average winning price was US$4,794 a tonne from US$5,016 a tonne at the last auction. Some 42,037 tonnes of product was sold, up from an eight-month low 34,568 tonnes in the previous sale.
Whole milk powder, the biggest product sold by volume, fell 5.7 per cent to US$4,703 a tonne and skim milk powder declined 3.9 per cent to US$4,658 a tonne. Butter milk powder fell 5.8 per cent to US$4,792 a tonne.
The sale follows the release yesterday of the ANZ Commodity Price Index for February, which charted a new record high, with gains for cheese, butter and casein, and comes after government figures showed the New Zealand's terms of trade gained 2.3 per cent in the fourth quarter, to the highest level since December 1973, driven by dairy products.
