Dairy product prices rose at the Global Dairy Trade auction, gaining for the first time in three auctions, with butter outpacing the other commodities amid strong consumer appetite for natural, full-fat products.
The GDT price index rose 0.2% from the previous auction two weeks ago to $US3387 ($4610). Some 26,688 tonnes of product was sold, down from 28,574 tonnes at the previous auction.
Whole milk powder advanced 0.3% to $3114 ($4237) a tonne.
“Whole milk powder prices are expected to stick close to current levels for most of the season,” Agri HQ dairy analyst Susan Kilsby said in a note.
At the latest GDT auction, butter rose 3.4% to $6004 ($8169) a tonne.
“Butter outshone other commodities once again this auction,” Miss Kilsby noted.
“Strong consumer demand for natural, full fat products such as butter is here to stay.
“Fonterra is set to offer less butter on GDT this year due to strong demand from other sales channels,” she said, adding that Fonterra’s forecast for butter offer volumes over the next 12 months is 15% behind what it offered last year.
Rennet casein gained 2.4% to $6358 tonne, while cheddar rose 1.6% to $4112 a tonne.
Meanwhile, skim milk powder dropped 3.2% to $2024 ($2754) a tonne, while lactose fell 1.8% to $825 a tonne, and anhydrous milk fat slipped 0.2% to $6577 a tonne.
Butter milk powder was not offered. NZME