Global dairy prices climb higher, volumes drop at auction
WELLINGTON (Reuters) - Global dairy prices rose for a tenth consecutive time at a fortnightly auction on Wednesday, although prices for whole milk powder (WMP), the most-traded item, eased again due to lower demand. The GDT Price Index climbed 0.5 percent, with an average selling price of $3,447 per tonne.
WELLINGTON (Reuters) - Global dairy prices rose for a tenth consecutive time at a fortnightly auction on Wednesday, although prices for whole milk powder (WMP), the most-traded item, eased again due to lower demand.
The GDT Price Index climbed 0.5 percent, with an average selling price of $3,447 per tonne. This was slower that the 0.8 pct rise in the previous auction, according to GDT Events.
Whole milk powder average prices eased by 0.7 percent, the second fall in a row.
"We think this is some of the supply premium coming out of prices as concern about the impact of dry weather on NZ milk production eases," Westpac senior economist Anne Boniface said in a note.
But Anhydrous milkfat (AMF) and butter continued their strong performance with the price indices up 4.2 percent and 3.5 percent respectively.
A total of 16,166 tonnes was sold at the latest auction, falling 9.5 percent from the previous one, the auction platform said on its website.
The auction results can affect the New Zealand dollar as the dairy sector generates more than 7 percent of the nation's gross domestic product.
The kiwi currency was trading down 1.3 percent at its lowest since Jan. 2, but the decline followed the release on Wednesday of softer than expected CPI data.
GDT Events is owned by New Zealand's Fonterra Co-operative Group Ltd, but operates independently from the dairy giant. The auctions are held twice a month, with the next one scheduled for May 7.
Fonterra, which is owned by about 10,500 farmers, controls nearly a third of the world dairy trade.
(Reporting by Praveen Menon; editing by Richard Pullin)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.