Global dairy prices continue to rise

There's been another rise in global dairy commodity prices.

Commodity prices lifted 6.7 percent to US$3,265/t at the February 6 Global Dairy Trade (GDT) event overnight.

The index has continued to increase since the December 5 GDT event in 2018, which was the first rise in seven months. 

NZX dairy analyst Robert Gibson said prices increased for all commodities except butter milk powder which was down 3.1 percent.

"Overall, the results were in line with the NZX Dairy Derivatives market expectations leading into the event," he said.

Whole milk powder (WMP) prices lifted 8.4 percent on the previous event to US$3,027/t. 

Leading into this event offer volumes for WMP was down on the previous event, but up 19 pecent on the previous year. 

Mr Gibson said firm demand from Asian countries is likely to have helped to support prices. 

"Skim milk powder (SMP) prices at February 6 GDT lifted 3.9 percent on the previous event to US$2,534/t SMP offer volumes leading into this event were down on the previous event, but up on the previous year."

Price indices for anhydrous milkfat (AMF) and butter increased 5.8 percent and 4.2 percent respectively. 

"Rennet casein lifted 10.9 percent to an average price of US$5,596/t, which is contrary to the decrease in value at the previous event and likely due to smaller volumes." 

Meanwhile, buttermilk powder decreased 3.1 pecent to an average price of US$3,158/t which Mr Gibson said could have been due to a lift in volumes at the event. 

"With relatively smaller quantities of these commodities sold at the event, volume changes can have a bigger impact on prices."