Dairy prices climb after extended decline

Dairy prices have been slipping since May. Photo/Getty Images.

Dairy product prices rose at the Global Dairy Trade auction, stemming a decline that began in May.

The GDT price index gained 2.2 per cent from the previous auction two weeks ago. The average price was a US$2,819 a tonne, compared with US$2,727 a tonne two weeks ago. Some 36,450 tonnes of product was sold, down from 42,966 tonnes two weeks ago.

Whole milk powder climbed 2.5 per cent to US$2,667 a tonne.

"There was likely increased demand for whole milk powder given the lower volumes on offer compared with the previous event," NZX dairy analyst Amy Castleton said in a note. "Whole milk powder offer volumes are coming back off their peak at the previous GDT event which is in line with normal seasonal trends."

At the latest GDT auction, buttermilk powder soared 16.9 per cent to US$2,973 a tonne, while anhydrous milk fat advanced 3.9 per cent to US$4,755 a tonne.

Butter added 2.7 per cent to US$3,745 a tonne, while rennet casein increased 2.0 per cent to US$5,167 a tonne.

Lactose rose 0.5 per cent to US$918 a tonne, while skim milk powder inched 0.3 per cent higher to US$1,970 a tonne.

Bucking the trend, cheddar fell 2.2 per cent to US$3,184 a tonne.

For sweet whey powder, no product was offered or sold, or no price was published for the last event, or on both of the two previous events.

The New Zealand dollar last traded at 69.29 US cents as of 2.01pm in New York, compared with 69.27 US cents at the previous close in Wellington.

There were 139 winning bidders out of 178 participating at the 18-round auction. The number of registered bidders was 507, up from 503 at the previous auction.

- BusinessDesk