Average dairy prices rose by 2.7% at this week’s GDT auction in New Zealand, in what is a further indication of a positive turn in dairy market sentiment over the last fortnight.

The price of all dairy commodities rose at this week’s GDT auction, with strong gains for skimmed milk powder (SMP), cheese and butter, in particular.

The price of whole milk powder (WMP), which accounted for over 50% of the 19,262t of product sold at the GDT this week, increased by just 1% to a little over $3,300/t (€2,680/t). SMP prices rose almost 4% this week to just over $1,900/t (€1,550/t). This puts New Zealand SMP at a €250/t premium over European product.

Fats

On the fats side, butter prices increased 3% at this week’s GDT to just over $5,650/t (€4,580/t), while the price of anhydrous milk fat increased over 5% to $6,120/t (€4,960/t). New Zealand cheddar prices increased almost 5% this week to $3,855/t (€3,120/t). There were also increases in the average price of lactose (+15%) and casein (+3%).