An overnight Global Dairy Auction event has recorded another lift in dairy prices, with milk powders driving the latest increase.
Prices rose 1.7 percent, with average prices reaching US$3481/t.
It's the fifth consecutive rise with prices continuing to hold in the range of US$3200-3500/t since early 2019.
NZX dairy analyst, Robert Gibson said the NZX Dairy Derivatives market was expecting prices to lift for whole milk powder (WMP), skim milk powder (SMP) and anhydrous milk fat (AMF), and butter.
"However, it is strength in the milk powders that have driven the latest increase, with milk fats easing on the previous event," he said.
"This is likely due to Northern Hemisphere production being at a seasonally low point in the year, and milk supplies continuing to wane from Southern Hemisphere countries, with New Zealand starting to ease back on the previous year's supplies too."
WMP prices were up 2.2 percent to an average price of US$3321/t, which is the highest average price for WMP since December 2016.
Prices lifted from 2.0 percent to 2.6 percent across all delivery dates.
SMP prices lifted 3.3 percent to an average price of US$3017/t, which is the highest average price since August 2014 continuing the strength seen in this commodity during the previous six GDT events.
Milkfats were weaker at the latest event, with AMF and butter prices down 1.5 percent and 1.3 percent respectively.
AMF prices were US$5108/t, and prices decreased across all delivery dates, while butter prices were US$4061/t with prices also decreasing across all delivery dates.
Gibson said leading into the auction, there was more milk fat product on offer, with softening prices likely due to some lifts in volumes sold.