The latest Global Dairy Trade (GDT) auction result was up 4% on average on Tuesday this week.
The move comes as a shot in the arm to milk prices as boards meet to set August milk price in Ireland.
What’s interesting about this is the timing.
New Zealand milk begins to flow about now in larger volumes as cows calve on North Island and South Island.
The last result two weeks ago was up a touch, but up 4% is a boost to commodity prices.
The driver will be Chinese demand continuing and lower than expected volumes produced in Europe.
Whole milk powder was up 3.3% to $3,691 per tonne, which is the key ingredient to watch for at the auction.
Skim powder was up 7.3% and butter up 3.7% to $4,948/tonne.
Irish milk suppliers will be hoping co-op price can get closer to what Ornua can get from the market and now they will be expecting to see this GDT result underpin the market for the autumn.