16 Apr 2014
Dairy prices fall for fifth straight day at NZ's Fonterra auction
FXStreet (Bali) - International milk prices suffered declines for a fifth consecutive auction, with volumes also going down on the latest auction held by New Zealand's Fonterra.
As Reuters reports: "Fonterra's GDT Price Index, formerly the Global Dairy Trade-Trade Weighted Index, fell 2.6 percent, with an average selling price of $4,047 per tonne, in the auction held on Tuesday. The slide followed a 8.9 percent fall in the previous sale, said Fonterra, which is known for brands such as Anchor, Anlene and Fresh n' Fruity. A total of 36,549 tonnes was sold, 7.8 percent less than in the previous auction, the co-operative said on its website."
Dairy prices are heavily monitored by NZD traders to assess economic prospects in New Zealand, as the dairy sector is one of the primary growth drivers, amounting for over 7% of the total NZ annual GDP. The auction results are a negative input for the New Zealand Dollar, which continues to trade near multi-year highs against the US Dollar amid an ongoing tightening cycle by the RBNZ.
As Reuters reports: "Fonterra's GDT Price Index, formerly the Global Dairy Trade-Trade Weighted Index, fell 2.6 percent, with an average selling price of $4,047 per tonne, in the auction held on Tuesday. The slide followed a 8.9 percent fall in the previous sale, said Fonterra, which is known for brands such as Anchor, Anlene and Fresh n' Fruity. A total of 36,549 tonnes was sold, 7.8 percent less than in the previous auction, the co-operative said on its website."
Dairy prices are heavily monitored by NZD traders to assess economic prospects in New Zealand, as the dairy sector is one of the primary growth drivers, amounting for over 7% of the total NZ annual GDP. The auction results are a negative input for the New Zealand Dollar, which continues to trade near multi-year highs against the US Dollar amid an ongoing tightening cycle by the RBNZ.