Dairy product prices rose at the Global Dairy Trade auction, gaining for the first time in five events, amid strong demand.

The GDT price index increased 2.7 percent from the previous auction two weeks ago. The average price was US$3,587 a tonne. Some 19,262 tonnes of product was sold, up from 17,222 tonnes two weeks ago.

Whole milk powder rose 0.6 percent to US$3,311 a tonne.

"Fonterra did lift its whole milk powder offer volumes ahead of this event; however solid demand seems to be absorbing anything New Zealand has to offer at the moment," Amy Castleton, AgriHQ dairy analyst, said in a note.

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There was 31 percent more whole milk powder sold at this auction compared to the one two weeks ago, with buyers taking nearly everything that was available, according to Castleton.

At the latest GDT auction, lactose rallied 14.8 percent to US$687 a tonne, while anhydrous milk fat climbed 5.3 percent to US$6,120 a tonne.

Cheddar rose 4.6 percent to US$3,855 a tonne, while skim milk powder advanced 3.6 percent to US$1,913 a tonne.

Rennet casein gained 3.1 percent to US$5,792 a tonne, while butter added 2.9 percent to US$5,654 a tonne.

Buttermilk powder was not offered at this event.

The New Zealand dollar last traded at 73.42 US cents as of 1.04pm in New York, compared with 73.63 US cents at the previous close in Wellington.

There were 102 winning bidders out of 182 participating at the 16-round auction. The number of registered bidders rose to 518, up from 514 at the previous auction.

- BusinessDesk

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