It has been a positive start to 2020 for New Zealand dairy farmers, with commodity prices rising at the first global dairy auction for the year.
The final Global Dairy Trade (GDT) auction of 2019 saw an unexpected drop of 5.1 percent after months of gains.
However in the latest GDT auction, the overall price index lifted 2.8 percent, with average prices sitting at US$3371/t.
NZX dairy analyst, Robert Gibson said there were increases for all dairy commodities, with smaller overall supply volumes available compared with the previous event.
"The result was largely in line with NZX Dairy Derivative Market expectations leading into the event, continuing the steady and strong trend in GDT prices we have seen since around 2016," said Gibson.
Whole milk powder (WMP) prices were up 1.7 percent to an average price of US$3150/t.
Skim milk powder (SMP) prices lifted 5.4 percent to an average price of US$3026/t.
"Milkfats showed some strength which puts a stop to the weakening trend in prices during the previous three GDT events."
Anhydrous milk fat (AMF) price index lifted 2.3 percent, with average prices reaching US$4929/t, while butter prices lifted 3.7 percent to an average price of US$4029/t.