Dairy product prices at today's Global Dairy Trade auction rose 1.4% on the previous auction.
The average price paid for dairy product at the event stood at US$2,965/MT with 31,525t of product traded.
Whole milk powder (WMP) prices rose 2.9% at today's Global Dairy Trade, below the anticipated rise of between 6-8% that the futures market had suggested.
The main movers at today's auction were butter (up 2.6%) and lactose (up 5.6%), while skimmed milk powder (SMP) was down 0.3%.
This latest increase in prices at the Global Dairy Trade auction comes after a dip in prices of 3% earlier this month and four consecutive price increases previous to that.
- AMF index up 1.1%, average price US$5,007/MT
- Butter index up 2.6%, average price US$3,984/MT
- BMP index up 0.2%, average price US$2,583/MT
- Ched index down 3.7%, average price US$3,290/MT
- LAC index up 5.6%, average price US$780/MT
- RenCas index down 4.5%, average price US$6,286/MT
- SMP index down 0.3%, average price US$2,204/MT
- WMP index up 2.9%, average price US$2,760/MT
Positive Dairy Market Sentiment
This latest increase in dairy prices at the Global Dairy Trade comes after the Ornua Purchase Price Index (PPI), rose for a third consecutive time this year.
For September, the PPI rose to 92.2 points, an increase of 6.7 points from the August PPI of 85.8 points.
Ornua’s September PPI is the equivalent of 26.6c/L, VAT inclusive and is based on Ornua’s product purchase mix and assumed costs of 6.5c/L.
According to Ornua, the September rise reflects higher returns across all of the main products. Returns on dairy products stabilised in June and since then prices have been on the increase.
The PPI had dropped significantly over the 14-month period from March 2015 to May 2015, from 101.2 points to 81 points.