Whole milk powder drives prices up at latest Global Dairy Trade auction
Dairy product prices rose 11.4% at today’s Global Dairy Trade auction, the second biggest increase in prices this year.
Whole milk powder (WMP) was the main driver of the price increase at the latest auction, with prices rising 19.8%.
The NZX Futures market had pointed to a 10% rise for WMP auction prices overnight, but prices surpassed this prediction.
Skimmed milk powder (SMP) prices increased 6.5% and butter prices were up 4%. Not all dairy products saw price increases, with Lactose prices down 4% and butter milk powder (BMP) down 5.4%.
- AMF index up 2.6%, average price US$5,146/MT
- Butter index up 4.0%, average price US$4,146/MT
- BMP index down 5.4%, average price US$2,248/MT
- Ched index up 0.9%, average price US$3,332/MT
- LAC index down 4.0%, average price US$755/MT
- RenCas index down 4.8%, average price US$6,025/MT
- SMP index up 6.5%, average price US$2,329/MT
- WMP index up 19.8%, average price US$3,317/MT
EU milk production decreases in August
Meanwhile, the latest figures from the EU Milk Market Observatory (MMO) show that EU milk production decreased by 1.9% in August 2016 compared to August of last year.
It is the third consecutive fall in EU milk production this year.
Milk collections fell 1.4% in July on the corresponding month last year while in June collections fell by 2.3% year-on-year.
Earlier this year, the European Commission revised end of year milk production volumes in the EU for 2016 downwards.
Provisional production figures from the Commission suggest that 2016 volumes will end 0.9% higher than in 2015.