Global dairy commodity prices have recorded a big rise at the latest Global Dairy Trade (GDT) auction, due to strong demand from key markets.
The global dairy commodity price index lifted 3.7 percent, with average prices reaching US$3446/t.
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Prices have continued to hold in the range of US$3200-3400/t since early 2019.
NZX dairy analyst, Robert Gibson said the NZX Dairy Derivatives market had expected prices to lift for whole milk powder (WMP), skim milk powder (SMP) and anhydrous milk fat (AMF), and butter.
"These results are likely due to strong demand continuing from key markets, and some flattening off of volumes sold as New Zealand heads out the tail end of its peak production month," he said.
WMP prices were up 3.6 percent to an average price of US$3254/t.
Although prices eased slightly for December contracts, they lifted for all remaining contracts in the range of 3.6 percent to 5.2 percent.
SMP prices lifted 6.7 percent to an average price of US$2924/t.
Gibson said there were strong increases across all delivery dates from 4.5 percent for near term December deliveries, up to 8.0 percent for April deliveries further out.
"SMP prices have only started to climb since early September after remaining flat for most of 2019 and may reflect a lack of intervention stocks available to purchases, as well as less volumes being sold into Asian markets as buyers compete for product. SMP is now at its highest level since March 2015."
Milkfat prices were also up, with the price index for AMF up 2.6 percent, and butter up 0.2 percent compared with the previous event.
Butter prices remained a little more mixed as buyers adjusted their volumes purchased to market prices, said Gibson.