Markets still mixed for NZ dairy produce

Dairy commodity prices continue to show mixed patterns. Anhydrous milkfat and butter both lost US$100/tonne to end the shortened week at US$4600/tonne and US$3800/tonne respectively.

Despite the softer look to the market, wholemilk powder (WMP) is holding up slightly better than the rest due to tight supply. WMP held steady at US$3500/tonne last week. Skimmilk powder (SMP) has not had the same fortune, sliding US$50/tonne for the second consecutive week to end up at US$3250/tonne.

Other commodities attempting to hold their ground or improve in this softer market are casein, which continued its climb, adding another US$100/tonne to US$8600/tonne, and cheddar, which has held steady at US$4250/tonne.

NZX Agrifax's payout prediction for the 2009/10 season remains at $6.35 per kgMS.

LAMB

The full effect of the extreme weather in the UK on British shopping behaviour is yet to be realised. Shopper numbers have declined by 6 per cent in what is supposed to be the busiest week of the year. However, thoughts are that the colder weather may encourage shoppers to stock up on traditional festive foods such as New Zealand lamb.

A decline in value of the New Zealand dollar has firmed prices received from overseas.

Locally, lamb slaughter numbers are increasing to now be 11 per cent behind this time last year compared with 13 per cent behind two weeks ago.

Farmgate prices remain flat for the week, with the NZ average for a 17.5kg lamb currently at $4.50/kg.

BEEF

Imported beef markets have become dormant The little trade that did take place for US imported bull saw it drop US1c/lb to US140c/lb. US imported cow held steady at US131c/lb after it was provided support by the US domestic cow price leaping, on tight supply, US3c/lb to US136c/lb.

Farmgate prices are unchanged for the week, with the New Zealand average for a 300kg bull sitting at $880 per head.

- © Fairfax NZ News