Adam had this up during the US session: New Zealand falls to lowest since February as Fonterra price index falls 6%
More on the overnight dairy auction (via the NZ Herald, more detail there):
- Dairy product prices dropped to their lowest level since July 2012 in the latest GlobalDairyTrade (GDT) auction
- Substantial falls registered in the two key segments for New Zealand producers – whole milk powder and skim milk powder
- The auction result was a disappointing one for farmers after the market showed signs of stabilising at the last auction two weeks ago, the GDT price index dropping by 6.0 per cent to US$2,787
- Whole milk powder prices dropped by 4.3 per cent to an average price of US$2,673 a tonne while skim milk powder dropped by 9.5 per cent to US$2,600 a tonne
ASB rural economist Nathan Penny said he had expected the market to stabilise, building on a steady auction result a fortnight ago.
“We had at least expected the market to show signs of stabilisation but it hasn’t happened, so it’s a disappointing result for farmers,” he said.
