Animal prices in New Zealand
| International dairy prices ... | ||||||||||||||
Jan 2010 Butter markets are described as unsettled with prices lower or unchanged, but good demand for anhydrous milk fat is still beng seen with the price rising at auction by 4.4%. Most production is committed at this stage. NZ price $5421/tonne. Skim milk powder markets are reported as similar to butter, unsettled and trending lower. Concern that NZ and Australias production levels are behind targets and this will pressure supply. NZ price $4471/tonne Whole milk powder prices are weaker and it is predicted the next trading event will show a further decline. NZ price $4576/tonne Cheddar The cheese markets have eased as well. Concerns about avaliability of product especially in second half of season. NZ price $5984/tonne. This weeks easing in the currency will help. Since Christmas dairy commodity values have eased 7-10% in NZ dollar terms. The peak that surged from October on, saw values rise between 32-56% over that period and an adjustment had to come. As the season progresses, production figures become more reliable, and it now appears while the total will be up on last year (1-1.5%) it will be by not as much as was earlier predicted. With NZ being such a big exporter of its dairy products, world traders keep a strong eye on our volume figures as they set their price parameters, and a shortfall should keep prices firm. Difficult grass growing conditions in both ends of NZ, coupled with tight cash flows has prevented many dairy farmers from capitalizing on the strong payout predictions, but medium term prospects still look good, and some conversion talk is starting to reappear. The deadline for uptake of additional Fonterra shares is looming, but early indications are that farmers will be conservative in their approach, and repay debt before any further share investment is made.
for more perspectives, see - Exchange rates for saleyard and processor price trend graphs, see |
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