Global dairy prices continue to have 'ripper run', up 4.8 percent in latest auction

It was the fifth consecutive rise in prices at the auction.
It was the fifth consecutive rise in prices at the auction. Photo credit: Getty

Dairy prices surged 4.8 percent in the latest Global Dairy Trade auction overnight.

The event was the second of the year and the fifth consecutive auction in which prices have risen.

The average price for commodities was US$3593 per metric tonne (MT).

The biggest rise came in prices for anhydrous milk fat, which was up 17.2 percent to US$5398/MT, with skim milk powder prices up 7 percent to US$3243/MT. 

Lactose rose 6.6 percent to US$1173/MT and butter was up 4.6 percent to US$4735/MT.

Whole milk powder - the most important product for New Zealand farmers - was up 2.2 percent to US$3380/MT.

The only commodity to fall in price was cheddar, which dropped 0.3 percent to US$4082/MT.

A total of 29,606 metric tonnes of product was sold at the auction.

ASB economist Nathaniel Keall said prices were having a "ripper run".

"It was another rip-snorter of a dairy auction overnight, as prices advanced yet again," Keall wrote in ASB's latest Commodities Weekly report.

He said all indications were that demand for dairy was likely to hold up well until the end of the season.

"Solid purchases from China have anchored price gains at recent auctions, and with the latest Chinese GDP figures showing a decent lift in GDP, there is little reason to think that story will change."