Average prices of dairy products fell for an eighth straight sale at Fonterra's latest online auction, tracking global commodities lower as Europe's debt woes stoked concern the world economy is stumbling.
The GDT-TWI Price Index fell 1.6 per cent, according to results posted on the globalDairyTrade auction website. The average winning price fell to US$3,449 a metric tonne, the lowest since August last year, when prices reached US$3,080 a tonne.
The Thomson Reuters/Jefferies CRB Commodity Index fell 1.1 per cent overnight and has declined to the lowest level since November. The European Union has hinted that holders of Greek bonds will face bigger losses than expected and Goldman Sachs Group is now forecasting recessions for Germany and France, helping take the steam out of prices for raw materials.
Whole milk powder fell 0.7 per cent to US$3,309 a tonne in the latest sale. Skim milk powder dropped 0.3 per cent to US$3,193. Anhydrous milk fat sank 3.5 per cent to US$3,703 a tonne and milk protein concentrate rose 0.5 per cent to US$6,713 a tonne. Rennet casein fell 7.2 per cent to US$8,181 a tonne. Butter milk powder rose 3.2 per cent to US$3,075 a tonne and cheddar fell 4.9 per cent to US$3,800 a tonne.
There were 129 winning bidders from 155 participants over 12 rounds. The platform has 427 qualified bidders, up from 417 at the last auction.
