Milk powder prices plunge at auction amid global supply glut

[inanna]

Source: Bloomberg News

Published Tuesday, Aug. 04, 2015 4:12PM EDT

Whole milk powder plunged to the lowest price in at least seven years at an international auction, the latest indication yet of chronic oversupply in the global daily industry.

<snip>

Farmers in the U.S., Europe, Australia and New Zealand expanded production after seeing record dairy prices last year. At the same time, China has slashed purchases and bolstered its production.

Combined with fair weather and cheap feed prices, there’s now a global surplus, Mr. Meyer said. That’s sent world dairy prices to their lowest since 2009.

Read more: http://www.theglobeandmail.com/report-on-business/international-business/milk-powder-prices-plunge-at-auction-amid-global-supply-glut/article25833932/?cmpid=rss1

[No Vested Interest]

1. Make cheese. nt

[Dark n Stormy Knight]

2. I guess there must be some nutritional value in powdered milk, and I guess it saves on

transportation costs, but that stuff tastes terrible. I was a tiny tot when I last had some, and I still remember how I hated it.

[jmowreader]

6. Most of it's used in food manufacturing

It doesn't have to be refrigerated until they mix it with water, so they can put it in a silo.

[Dark n Stormy Knight]

7. OK, that makes more sense. Thanks for the info.

[bucolic_frolic]

3. This is great news

In the recession there was leftover powdered milk, $2 for 2 gallon supply.

Now it's $7-10

Hope it drops good

[Wellstone ruled]

4. Most Commodities are in free fall.

And the Dairy Industry just keeps tripping over it's self. Fluid Milk Price one year ago was $20/hundred wt.,now lucky to get $16/hundred wt. Watch out below!!!! Most feed grains and Dairy products are being kept artificially high until the Biggee's at the Board of Trade in Chicago find suckers to pick up their positions and then kabamm down the porcelain fixture.

[Lucky Luciano]

5. The kiwi (nzd dollar) is getting crushed because of the milk price issue. nt