Dairy product prices rose at the Global Dairy Trade auction as whole milk powder prices held steady.
The GDT price index rose 0.5 per cent from the previous auction two weeks ago. It was the third straight gain. The average price was US$3,330 a tonne, compared with US$3,306 a tonne earlier this month. Some 38,712 tonnes of product was sold, up from 38,716 tonnes two weeks ago.
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Whole milk powder was steady at US$3,133 a tonne. Rennet casein climbed 3.6 per cent to US$6,916 a tonne, while skim milk powder rose 2.4 per cent to US$2,743 a tonne. Anhydrous milk fat increased 0.8 per cent to US$5,065 a tonne.
Leading into this event, the NZX Dairy Derivatives market was expecting prices to lift for WMP, SMP and AMF, but soften for butter, and this is largely what has occurred, NZX dairy analyst Robert Gibson said. "These results are likely linked to stronger demand from North Asia, strengthening demand for milk powders," he said.
Gibson noted the milk powder result is positive for farm gate milk prices remaining strong this season, with WMP prices holding steady above US$3,000/t. Skim milk power lifted for the fourth consecutive time, having reached its highest point since March 2015.
Bucking the trend, cheddar dropped 2.2 per cent to US$3,636 a tonne, while butter fell 0.4 per cent to US$4,105 a tonne. Lactose was US$785 a tonne. No percentage change was given. Butter milk powder was not offered at this event.
The New Zealand dollar last traded at 62.84 US cents at 7:20am in Wellington, compared with 63.03 US cents at 5pm yesterday.
There were 142 winning bidders out of 199 participating at the 14-round auction. The number of registered bidders was 505, up from 504 at the previous auction.