Another lift in global dairy commodity prices

Another lift in global dairy commodity prices
Photo credit: Getty

Global dairy commodity prices have continued their rally, with another lift in prices in the latest Global Dairy Trade (GDT) event.

In the 10th consecutive increase, the GDT price index was up 0.5 percent at the April 16 auction, reaching an average price of US$3,447/t.

NZX dairy analyst Robert Gibson said, while average prices eased for milk powders, they lifted for milk fats and cheese.

"Whole milk powder (WMP) average prices eased on the previous event to US$3,269/t, with the price index down 0.7 percent," he said.

The WMP price index decreased across all periods except Contract 2 which was up 0.3 percent, with total offer volumes for WMP unchanged on the previous event at 9,650t. 

"The decline in overall prices continues to reflect easing demand across our markets, particularly North Asia," said Gibson.

Skim milk powder (SMP) average prices eased on the previous event to US$2,462/t, with the price index up 0.2 percent. 

The SMP price index was down for Contract 3 and onwards. 

"This follows a small recovery in average prices at the previous event with the increase in the SMP price index at the latest event likely a reflection of a decline in volumes sold."

Milk fat average prices lifted on the previous event. 

Anhydrous milkfat (AMF) average prices increased to US$6,126/t, with the price index up 4.2 percent on the previous event. 

Butter average prices increased to US$5,544/t, with the price index up 3.5 percent on the previous event. There were strong gains across all contract periods, particularly on near term Contracts, the exception being Contract 5 for AMF which declined on the previous event.

Rennet casein average prices decreased on the previous event to US$6,460/t, with the price index down 2.4 percent, while Lactose average prices decreased to US$912/t, with the price index also down ( 3.4 percent) on the previous event. 

"Traded volumes are relatively small for both commodities with the price changes likely linked to volumes sold," said Gibson.

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