Dairy commodity prices drove the Global Dairy Trade index up 0.8% at last night’s auction.
Every category except milk fat products lifted with whole milk powder up 1.5% and skim milk powder up 2.2%.
Eighty-nine percent of the total 43,497t available was sold.
The rise in SMP prices, to US$2809/t, takes them to their highest average price on the platform in the past 12 months.
NZX dairy analyst Rosalind Crickett said in a note that factoring market sentiment, the increased demand for both milk powders at GDT 364 is not surprising – given the off-peak of milk production in the northern hemisphere combined with factors such as the bluetongue virus, which has been increasing in prominence in both the United Kingdom and Europe.
Looking at milk fats, AMF eased 1.2% overnight to settle at US$7220/t – its first change of direction after four consecutive increases at GDT Events since July. Butter also softened 1.7% to reach an average price of US$6546/t.
Among other products, cheddar rose 2.9% to reach its second highest price in the last 12 months of US$4441/t.
Mozzarella continues to know no limits, seeing further 4.5% increase in prices to US$5351/t. Lactose also saw a 3.5% increase this time, after a heavy decline at GDT 363, settling at US$896/t.
North Asia maintained its top purchasing spot for both milk powders and butter at GDT 364 – accounting for 51% of the total product volumes. Southeast Asia/Oceania was the top buyer of AMF, while Africa was for cheddar.
