Dairy product prices rose 1.7% at today's Global Dairy Trade auction, the fourth consecutive rise in prices at the auction this year.
Whole milk powder (WMP) prices fell 0.2% at today's auction, contrary to suggestions from the NZX futures market that prices could rise between 8-10%.
All other dairy commodity prices registered an increase in prices, with buttermilk powder (BMP) up 7%.
Skimmed milk powder (SMP) was up 3%, while butter prices at the latest auction were up 3.6%.
- AMF index up 4.6%, average price US$4,998/MT.
- Butter index up 3.6%, average price US$3,892/MT.
- BMP index up 7.0%, average price US$2,276/MT.
- Ched index up 2.2%, average price US$3,518/MT.
- LAC index up 3.7%, average price US$815/MT.
- RenCas index up 2.0%, average price US$6,893/MT.
- SMP index up 3.0%, average price US$2,293/MT.
- WMP index down 0.2%, average price US$2,782/MT.
Meanwhile, closer to home and at this week's National Ploughing Championships, ICMSA Deputy President Pat McCormack said that milk prices next spring should be in excess of 30c/L.
The dairy futures markets are reflecting a steady demand for milk for the next six months, he said.
"That will bring us through to next spring. After that, international supply and demand factors will determine the tone of the markets.
"Sentiment is now a key factor in determining the actual strength, or otherwise, of commercial dairy markets. And all the signals are suggesting that market sentiment will continue to grow positively over the coming months."