2 Nov 2011

Global dairy prices slip again

1:10 pm on 2 November 2011

Dairy commodity prices have slipped further in Fonterra's latest global dairy trade.

After recovering some ground in the previous auction, whole milk powder prices eased back slighty again overnight.

However, prices for most skim milk powder contracts firmed some more.

Fonterra achieved a 3% premium over American skim milk powder offered for the first time on the global dairy trading platform.

The biggest price fall overnight was for anhydrous milkfat which dropped by a further 9.3%.

Softer world dairy prices were the main factor in Fonterra reducing its forecast milk payout for the season last month.

New Zealand whole milk powder exports picked up last month, putting them 19% above export volumes for the first nine months of last year.

Whole milk powder shipments to New Zealand's largest market, China, are 13% ahead of last year.