Dairy product prices were steady at the Global Dairy Trade auction, as a drop in whole milk powder offset gains in cheddar and butter amid concern about increasing supply.
The GDT price index was unchanged in percentage terms at the previous auction two weeks ago, coming in at US$2,339, compared with US$ 2,329 at the previous auction. Some 23,089 tonnes of product was sold, down from 24,046 at the previous auction two weeks ago.
Whole milk powder dropped 4.5 percent per cent to US$2,118 a tonne.
"The GDT result indicates the market is still weak which is a concern as offer volumes are forecast to lift in the current months as more new season product is offered," AgriHQ dairy analyst Susan Kilsby said in a note. "In the current environment it is difficult to see prices move substantially higher before the end of the year."
The AgriHQ Snapshot milk price dropped 31 cents to $3.91 on the weak whole milk powder prices and the stronger New Zealand dollar, according to Kilsby. The snapshot milk price indicates what the farmgate milk price would be if all of the season's product was sold at June 15 GlobalDairyTrade prices and at the current exchange rate.