Dairy prices plummeted at the fastest rate in seven years at the latest global auction, as buyers appear to have baulked at record high prices. The Global Dairy Trade price index dropped 8.5% overnight to $US 4419. That’s the biggest fall since 2015 when the index shed 9.3%. Analysts are saying not to panic as the drop comes after steep rises in dairy prices this year, so in a sense it is a correction adding that the latest result suggests buyers may have finally had enough of paying high dairy commodity prices.
So to the figures:
- Anhydrous milk fat down 12.1% to $US6,008 per metric tonne
- Butter – dropped 12.5% to $US5,807 a drop of $800 a tonne in two weeks
- Butter Milk Powder was down 6.1% to $4,203 US
- Cheddar down 8.6% $US 5,652 per metric tonne
And the powders
- Skim Milk down 6.5% to $US 4,130
- Whole Milk also down 6.5% in US$ terms is $ 3,916 per metric tonne … it has dipped 15% in the past two auctions.
Westpac Agri. Economist Nathan Penny says prices could not continue to keep rising and there comes a point when buyers say enough is enough.