Prices diving on milk powder auction

Fonterra milk powder products awaiting shipment overseas - source: provided
Prices slipped 1.3% at Fonterra's latest online auction of milk powder, holds close to four-month high and hold one of the pillars of the intact New Zealand's terms of trade.
The gDT TWI, an index of four products - whole milk powder, skimmed milk powder, butter, skimmed-milk powder and anhydrous milk fat - fell to US $ 3,591 per metric tonne managed according to the CRI international GlobalDairyTrade website.
Prices for whole milk powder, the 67% product seclusion 22,000 tons made fell 2.1%.
This week's is selling the first, because Fonterra held its forecast pay out for farmers to $ 6.60 one kilogram of milk solids during warning more price volatility as supply and demand in the global markets move more in the balance.
It comes after the ANZ commodity index for September, 2.9%, published this week increased closing in on the all-time high reached in May.
Dairy prices rose 6%.
A 1.3% decline "is fairly stable," said Robin Clements, senior economist at UBS New Zealand.
"Trading partner growth taper is a little remote, but it is still about Trend.Der long-term trend for soft commodities is strong enough – this is good for the terms of trade and the economy."
Fonterra reached a record 2.1 million tonnes of milk exports for the business year July 31, helped by demand from China and Russia.
0.9% Prices milk powder 2.8% milk fat gestiegen.Wasserfreies for skimmed-milk powder decreased, while butter rose 1.4%.
There were with 80 winners after 10 laps 122 tenderers shall participate in the sale.

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