Dairy product prices are up at Fonterra’s GlobalDairyTrade auction, rising for the third time in a row and offering a boost to sentiment.
The GDT price index gained 3.1 per cent from the previous auction two weeks ago and the average price rose to $US3139.
Some 22927 tonnes of product was sold, up from 22642 at the previous auction.
Whole milk powder climbed 3.5 per cent to $US2998/tonne.
A large volume of instant whole milk powder sold at a lower price than the regular grade product, AgriHQ dairy analyst Susan Kilsby said.
‘‘It was unusual to see regular grade whole milk powder selling at a premium to the higher specification product but we have seen a lot of strength in the futures market recently and it is the regular grade product this market settles against,’’ Ms Kilsby said.
Skim milk powder jumped 7.1 per cent to $US2044/tonne.
‘‘The GDT prices indicate there are buyers that are prepared to pay a premium to source skim milk powder produced in New Zealand,’’ Ms Kilsby said.
‘‘Elsewhere in the world there is a glut of skim milk powder, but here we are successfully moving product and attaining good prices.’’
Cheddar rallied six per cent to $US3462/tonne, butter increased 2.9 per cent to $US4892, while lactose added 1.2 per cent to $US935.
Meanwhile, rennet casein dropped 3.8 per cent to $US6020/tonne, while anhydrous milk fat slipped 0.5 per cent to $US5930. Butter milk powder sold at $US1720.
Source: Riverine Herald
