Dairy markets received a major boost this week with a 4.9% increase at the first GDT event for September.
This lifts the price index to US $4,007/t and halts a run of five consecutive auctions where prices fell.
Butter jumped by 3.3%, with cheddar seeing a more modest 1% increase. Skim milk powder (SMP) rose by 1.5%, while increased demand for whole milk powder (WMP) saw prices increasing by 5.1%.
The auction benefited from increased buying competition as customers grow anxious about the downturn in global milk supply on the back of soaring input and energy costs.
There were positive outcomes at the weekly Dutch Dairy Board auctions, with butter up another €70 to €7,220/t, making it the fourth consecutive week butter has increased in value. SMP rose by €60 to €3,620/t, with WMP price unchanged at €4,700/t.