By Margreet Dietz
July 17 (BusinessDesk) - Dairy product prices rose at the Global Dairy Trade auction, climbing for the first time in five auctions, on stronger appetite for milk powder.
The GDT price index rose 2.7 percent from the previous auction two weeks ago. The average price was US$3,412 a tonne, compared with US$3,302 a tonne two weeks ago. Some 25,000 tonnes of product was sold, up from 24,711 tonnes two weeks ago.
“This follows four consecutive decreases in the index and was likely linked to tighter global milk supplies with demand at this event firming for milk powder, milk fats and cheese,” NZX dairy analysts Robert Gibson and Amy Castleton said in a note. “Milk powder prices strengthened in response to stronger demand from Southeast Asian countries and the Middle East.”
Whole milk powder average prices advanced 3.6 percent to US$3,074 a tonne.
“This was the first lift in average prices for whole milk powder since March,” according to Gibson and Castleton. Price levels lifted across all delivery dates out to December, with stronger increases for November and December delivery dates, up 4.0 percent and 4.1 percent respectively, the analysts noted.
At the latest GDT auction, skim milk powder rallied 3.8 percent to US$2,505 a tonne, while cheddar added 3.3 percent to US$3,869 a tonne.
Butter increased 1.7 percent to US$4,406 a tonne, while anhydrous milk fat gained 1.7 percent to US$5,523 a tonne.
Even so, rennet casein dropped 3.4 percent to US$7,044 a tonne.
Butter milk powder was not offered at this event.
For lactose and sweet whey powder, no product was offered or sold, or no price was published for the last event, or on both of the two previous events.
The New Zealand dollar last traded at 67.01 US cents as of 3.44pm in New York, compared with 67.19 US cents at the previous close in Wellington.
There were 116 winning bidders out of 174 participating at the 13-round auction. The number of registered bidders was 512, up from 509 at the previous auction.