Prices have increased in the latest global night auction to the highest level at almost three years.
The average price increased by 1.6 % to $ 4385 (US $ NZ7430) a ton, the best since July 2022, after the 1.1 % increase in the previous auction, two weeks ago.
NZX Dairy Analyst Rosalind Crickett said the “dairy bulls” were in charge of the market and drove the purchase in a close -up auction.
“The prior feeling of high touched the dairy markets at night … Ascending time in prices took the index this time from all Bar Skim Milk Powder (SMP) and Cheddar product categories.”
She said the results were mainly aligned with NZX’s expectations.
The price of the wholemilk powder, which strongly influences payments for local farmers, increased by 2.8 %to $ 4385 per ton, the highest since mid -2022.
Crickett said that milk production fell in China, which led to the additional purchase of powder, butter and cheese, while the companies replenish shares.
The strongest demand in the auction came from the North and Southeast Asia buyers, who took more than half of the products offered, with Europe taking about a quarter.
The force of global prices supported the forecasts of the dairy company of recording milk payment of the season soon, at least $ 10 per kilo of milk solids.
But the high export prices also supported New Zealand’s high domestic prices for a wide range of dairy products, with milk rising 16 % and butter rising almost 64 % last year, according to the latest NZ data.
