The GDT index price lifted 1.6% in the latest Global Dairy Trade auction, with most product categories seeing price index increases across the board.
WMP lifted 2.1%, SMP was up 1.2%, butter had a slight lift of 0.7% and cheddar jumped 9.7%.
NZX dairy analyst Rosalind Crickett said the reduction in forecast volumes could well be the driver behind this price recovery, following the last event’s decline.
“Whole milk powder (WMP) saw modest increases this time across all contracts. However, it shows stronger demand in the long run, suggesting countries have ample supply in the short-term,” she said.
Both milk fats saw incremental increases at this event. Butter increased in index price for the first time in two GDT events, now sitting at an average price of US$4936/t – down only marginally from GDT 342.
“Following Fonterra’s forecast volume reduction prior to the last event, we are now seeing stronger demand for butter in the long term, with C5 showing the largest increase.”