June 16, 2011

 

Fonterra's average dairy prices decrease

 

 

Average prices of dairy goods plummeted from a three-month high in Fonterra's most current online auction due to weakening of commodity prices and equity markets on doubts about the speed of US economic development and Greece's debt troubles.

 

The GDT-TWI Price Index fell 2.6 per centto US$4,324/tonne, according to results posted on the globalDairyTrade auction website.

 

That follows a 4.5 per centgain in the previous auction two weeks ago.

 

Skim milk powder led the decline in the latest auction, with the average price dropping 7.1%. Anhydrous milk fat fell 5.9%. Milk protein concentrate and rennet casein declined 0.3% and 2.4% respectively.

 

Whole milk powder climbed 2.6%.

 

The Thomson Reuters/Jefferies CRB Commodity Index of 19 commodities was recently down 2.4 per centand equity markets fell after European officials failed to reach accord on a rescue for Greece.

 

US economic figures showed New York region manufacturing fell, US homebuilding confidence dropped and industrial production rose less than expected.

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