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Financials

CORRECTED-UPDATE 1-Global dairy prices fall for fourth consecutive auction

(Removes company names in paragraph 10 as they no longer use the platform)

WELLINGTON, July 3 (Reuters) - Global dairy prices dropped for a fourth consecutive time at a fortnightly auction held early on Wednesday, as volume of the products increased.

The Global Dairy Trade (GDT) Price Index dipped slightly by 0.4%, with an average selling price of $3,302 per tonne, in the first auction for the month. The index fell 3.8% at the previous sale.

A total of 24,711 tonnes was sold at the latest auction, an increase of 1.9% from the previous one, the auction platform said on its website (www.globaldairytrade.info).

The drop in prices was driven by declines in all commodities except skim milk powder, which rose 3.2%, and whole milk powder which was flat.

Prices of anhydrous milk power, butter and butter milk powder fell 1.9%, 4.8% and 11.9%, respectively.

The auction results can affect the New Zealand dollar as the dairy sector generates more than 7% of the nation’s gross domestic product.

The New Zealand milk co-operative, which is owned by about 10,500 farmers, controls nearly a third of the world dairy trade.

GDT Events is owned by New Zealand’s Fonterra Co-operative Group Ltd, but operates independently from the dairy giant.

U.S.-listed CRA International Inc is the trading manager for the twice-monthly Global Dairy Trade auction.

A number of companies use the platform to sell milk powder and other dairy products.

The auctions are held twice a month, with the next one scheduled for July 16. (Reporting by Praveen Menon, editing by G Crosse)

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