Global Dairy Trade prices jumped a whopping 5.5% this week, the largest percentage rise since March 2021.
Whole milk powder prices had the hero performance, increasing by 7.2%, the biggest single-event jump in more than three years.
WMP always has the biggest influence on the milk price forecast, which is now expected to increase.
All commodities sold in the latest GDT auction rose in price except for cheddar, which fell by 0.2%.
Mozzarella was up 5%, anhydrous milk fat by 4.8%, skim milk powder rose 4%, butter 3.7% and lactose 2.7%.
China maintained a notable presence again at this auction, taking the lion’s share of milk powders, butter and lactose – absorbing approximately half of all 40,000 tonnes of product on offer. That was the catalyst behind the pricing increases.
The SGX-NZX Dairy Derivatives market indicated mixed results across the commodities before the GDT event.
The international dairy market is a landscape of contrasting signals, NZX commercial manager Cristina Alvarado said before the GDT event.
“While there is upward momentum for WMP, driven by strong demand and recent price gains, SMP and milk fats face a more uncertain trajectory.”
NZX dairy analyst Rosalind Crickett said that all eyes in the dairy industry would now turn to Fonterra to see if it would provide an update on the farmgate milk price forecast for the season.
That would be a welcome lift to dairy farmers as they enter spring, the busiest and most productive time.
