Global Dairy Trade Update: Prices Surge in Latest Auction
Source: The DairyNews
In a significant market movement, dairy prices have experienced their largest increase in three months, according to the latest data from the overnight auction. The average price for dairy commodities ascended by 3.3 percent to reach US$3861 per tonne, building on a 1.8 percent increase recorded just two weeks earlier.
Key among the dairy products, wholemilk powder, which is crucial for determining local farmer payouts, saw a 2.9 percent rise, bringing its price to US$3408 per tonne. This uptick in wholemilk powder prices is particularly noteworthy as it influences the earnings of dairy farmers significantly.
Further gains were observed across a range of dairy products. Butter prices soared by over 5 percent, skim milk powder prices climbed by 3.5 percent, and mozzarella saw a substantial increase of nearly 10 percent, underscoring a broad upward trend in dairy commodity prices.
This price rally comes as the dairy production season in New Zealand begins to wind down, with current market prices bolstering forecasts for a payout of $7.80 per kilogram of milk solids.
Rosalind Crickett, a dairy analyst with NZX, highlighted that wholemilk powder has reached its second-highest price point in the past year. This surge is partly attributed to increased purchasing activities from North Asia, which nearly doubled its buying compared to previous periods. Crickett suggested that this boost in demand might be linked to a slight decrease in China’s milk production in March.
As the 2023/24 New Zealand milk production season draws to a close, these results are seen as a positive development for farmers, providing a robust end to the season's market dynamics.
Further gains were observed across a range of dairy products. Butter prices soared by over 5 percent, skim milk powder prices climbed by 3.5 percent, and mozzarella saw a substantial increase of nearly 10 percent, underscoring a broad upward trend in dairy commodity prices.
This price rally comes as the dairy production season in New Zealand begins to wind down, with current market prices bolstering forecasts for a payout of $7.80 per kilogram of milk solids.
Rosalind Crickett, a dairy analyst with NZX, highlighted that wholemilk powder has reached its second-highest price point in the past year. This surge is partly attributed to increased purchasing activities from North Asia, which nearly doubled its buying compared to previous periods. Crickett suggested that this boost in demand might be linked to a slight decrease in China’s milk production in March.
As the 2023/24 New Zealand milk production season draws to a close, these results are seen as a positive development for farmers, providing a robust end to the season's market dynamics.
