Dairy product prices have edged higher at the latest Global Dairy Trade auction, held in New Zealand, with whole milk powder rising and butter hitting a record high.
The GDT price index rose 0.9 per cent from the previous auction two weeks ago to US$3368.
The all-important whole milk powder price gained 0.6 per cent to US$3122/tonne.
‘‘Price gains (were) recorded in the nearby delivery contract but weaker prices (were) recorded in the later delivery contracts,’’ AgriHQ dairy analyst Susan Kilsby said of whole milk powder.
‘‘The price for regular grade whole milk powder for November delivery fell less than 0.2 per cent,’’ she said.
‘‘Extra product was added into this contract last week so it was good to see that the market was able to absorb the additional whole milk powder without too much of a negative impact on the price.’’
Meanwhile, butter gained 1.2 per cent to reach a record US$6062/tonne.
Some 34117tonnes of product was sold, up from 33501 tonnes at the previous auction.
‘‘It was surprising to see more product added to the auction given the weak start to New Zealand’s milk production season,’’ Ms Kilsby said.
There were 134 winning bidders out of 174 participating at the 17-round auction.
Skim milk powder fell 1.2 per cent to US$1920/tonne, while cheddar declined 1.9 per cent to US$4032/tonne.
‘‘Skim milk powder pricing remains weak and this is unlikely to change while there is so much stock held in Europe,’’ Ms Kilsby said.