19 Feb 2014

Fall in latest dairy auction not a concern

3:21 pm on 19 February 2014

A dairy market analyst says too much shouldn't be read into the price falls in the latest Global Dairy Trade auction.

Dairy commodity prices fell by an average 1.2 percent on Wednesday and the amount of product sold was also down a little on the previous fortnightly auction.

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The biggest price drop was for anhydrous milk fat and butter which fell by 4.5 percent and 3.8 percent.

But the average prices for the two main commodities, skim and whole milk powder, eased only slightly.

NZX-Agrifax's dairy analyst Susan Kilsby says the market for dairy products is still strong.

She says volume for this auction increased on previous forecasts.

"The market has picked it up and while we've seen a small easing in overall prices, prices of whole milk powder came in just a tad under $5000 a tonne so still extremely high in historical terms."