Global Dairy Trade (GDT) auction prices decline 0.4%
Whole Milk Powder prices fell 0.6% following a 1.3% gain previously, although Skim Milk Powder prices rose 0.3%. There was a further small correction in butter prices which fell 1.3%, EconomicCalendar reports.
Prices overall have dipped slightly further below highs seen in December 2016 with significant erosion over the past two months.
The data will maintain concerns that underlying strength in the sector is fading slightly, especially as futures markets were expecting an increase in Whole Milk Powder of close to 4.0% for the latest sale.
There will be further speculation that Chinese demand for milk powder is fading which would be an important element in sapping confidence.
In this environment, there will be further pressure to focus on value-added dairy products. ■