Prices climb again in latest Global Dairy Trade auction

Prices have increased 1.9 per cent across the board in the latest Global Dairy Trade auction, held overnight.

And they weren't the only aspect of the event on the rise - the volume traded exceeded 30,000 metric tonnes (MT) for the first time this season, with 30,397 sold.

All indications were pointing in the upward direction, after NZX milk futures prices on Tuesday broke through $9.00 kg/MS - the highest since it's inception in 2016.

They weren't wrong.

Whole milk powder - which has the biggest influence on Fonterra's farmgate milk price - lifted 1.9 per cent to an average US$3987/MT.

This further builds on a 2.7 per cent increase at the previous auction and saw the product inch closer the US$4000/MT mark seen earlier this year.

Skim milk powder - Fonterra's second biggest reference product - calmed somewhat, following a 6.6 per cent spike in the previous event, to record a 1.4 per cent lift to an average US$3626/MT.

Cheddar, which hiked a remarkable 14.1 per cent in the last auction, also recorded a more steady climb this time - up 2.2 per cent to an average US$5162/MT.

Butter experienced another healthy lift - increasing 3.5 per cent to an average US$5534/MT.

Meanwhile lactose rose 1.6 per cent to an average US$1299/MT, but with very little product traded; and anhydrous milk fat added another 1.3 per cent to its balance with an average US$6472/MT.

Butter milk powder and sweet whey powder were not offered at this event.

On May 26, Fonterra announced an opening forecast Farmgate Milk Price range for the 2021/22 season of NZD $7.25 - $8.75 per kgMS, with a midpoint of $8 per kgMS.

Last month, the co-op increased and narrowed this to NZD $7.90 - $8.90 per kgMS, with a midpoint of $8.40 per kgMS.