Source: Radio New Zealand
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A drop in milk volumes sold saw prices rise at the Global Dairy Trade auction overnight, stopping the slide seen at the previous two events.
The average price rose 1.5 percent overnight to US$4127 (NZ$5035) a tonne.
It followed a 2.7 percent fall at the previous auction a fortnight ago, and a 3.4 percent drop at the start of April.
NZX dairy analyst Rosalind Crickett said the volume sold dropped about 9 percent as the current dairy season winds down, which coupled with strong buying activity from Southeast Asia and Oceania – accounting for 41 percent of the total volume sold – drove the price increase.
She said the region was the main buyer for most products – counterbalancing a pullback from both North Asia and the Middle East, where the war continues to also influence activity.
“Despite global milk supply remaining strong, ongoing geopolitical tensions in the Middle East seemingly have no end in sight, as the cost of fuel, fertiliser and feed inputs add to logistical challenges while also driving up the cost of food production.
“With previous hand-to-mouth buying patterns being exhibited in recent events, the current market activity suggests buyers are looking to lock in future orders before costs get unmanageable.”
Whole-milk powder prices were up 2.2 percent to US$3741 (NZ$6352) a tonne, while skim milk powder also rose 3 percent and butter milk powder was up 9 percent.
Butter itself saw a 2.6 percent price drop though.
“Ample cream availability – especially with the northern hemisphere production season getting into full swing – continues to weigh on butter pricing,” Crickett said.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand