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Global dairy prices eased rather than tumbled overnight, as investors took comfort that central banks were moving to soften the blow of coronavirus.
Fonterra’s global dairy auction fell overall by 1.2 per cent to US$3,112. Prices for key export product whole milk powder fell a mild 0.5 per cent to US$2,952 per kilogram of milk solids – much better than the 3 per cent fall ASB economists was expecting.
Skim milk fell 3.2 per cent, while butter rose 1 per cent.
ASB rural economist Nathan Penny said the coronavirus-inspired turmoil on world markets was the biggest issue for New Zealand dairy exports, more so than the current drought, but the auction indicated that those fears were stabilising.