Global Dairy Trade prices had a broad-based bounce-back in the latest auction, the index rising 2.8% after two events in which it fell by similar amounts.
Cheddar and whole milk powder led the way, increasing by 4.1% and 3.4% respectively.
Prices for anhydrous milk fat, butter and skim milk powder also rose; only butter milk powder and lactose fell.
The latest 2.8% rise in the GDT index means that the dairy commodities market has lifted by 27.5% since last August, despite two recent falls totalling 5%.
Chinese buyers have returned to the market along with those from the Middle East, dairy analysts say.
“WMP has found a near-term price floor following two weak results in March,” NZX analyst Lewis Hoggard said.
“SMP prices also seem to have found a floor, but demand was not especially strong with concerns about bird flu in the United States dairy herds.”
Westpac chief economist Kelly Eckhold pointed out that European buyers took their largest proportion of sales since 2021 and that may indicate some milk production softness at home.
The rebound in WMP prices reduced some of the modest downside risk to the Westpac milk price forecast of $7.90, he said.
