The most recent Global Dairy Trade auction was up 2.2% on Tuesday, with important price lifts for whole milk powder and butter.
Butter was up 8.4% to trade at $3,561/t and whole milk powder was up 1.7% to trade at $3,041/t.
This latest result is good news for milk suppliers all over the world, as New Zealand milk supply cranks up at this time of the year.
As New Zealand plays an important part on export markets, a rising GDT helps market sentiment. It also reinforces the last auction result, which lifted 3.6% in mid-September. All this will be music to the ears of Irish milk suppliers as boards meet over coming days to set September milk price.
Chinese imports are likely to have driven this GDT increase to a large extent. We can see that in the recent six-monthly statistics on Chinese dairy imports comparing 2020 and 2019.
Whole milk powder imports into China are up 1% to 450,000t for the six-month period from January to July 2020.
Whey powder imports into China are up 37% for the same period.
Skim is the other product of choice for China, but the 2020 six-month figure is actually back 10% on the same period of 2019.
Whey powder and whole milk powder into China seem to be driving the market at the moment.
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