The ANZ world commodity price index hit a new record in March, lifting 3.9%. Prices are very strong across most commodities, although none of the sub-indices are currently at record levels.
In local currency terms, the index gained just 0.5%, as local returns were eroded by a 3.1% gain in the trade weighted index (TWI).
While farmers were digesting this news, the latest global dairy auction recorded a dip in prices as demand weakened from Chinese buyers. The GDT price index slid 1% to 1564 at the auction following a 0.9% fall at the previous bimonthly auction.
Dairy prices have risen steeply at auction this year, pushing the index to record levels, as tight supply underpins demand.
But at the latest auction, demand weakened from China, the world’s largest dairy market, as the country puts major cities into lockdown to try and contain an outbreak of Covid-19, causing disruption to supply chains and prompting local dairy processors to increase production of milk powder, denting demand for imported product. Continue reading “Global dairy prices weaken as China reduces its demand”