Dairy product prices rose for the first time since February in the latest GlobalDairyTrade auction, paced by butter milk powder, as buyers found value after the recent slide in prices.
Expanding global milk supply and a drop in buying by Chinese importers as they run down inventories has weighed on dairy prices this year, although lower prices are now starting to entice other buyers back into the market, according to Rabobank's Agribusiness Monthly, released yesterday. Supply won't abate soon though, with figures for New Zealand's 2014 season expected to show record milk production.
The GDT price index advanced 0.9 per cent to US$3,807 a tonne, the first gain after eighth consecutive declines. Some 31,984 tonnes of product was sold, down from 37,012 two weeks ago.
In the latest GDT auction, butter milk powder surged 17 per cent to US$4,535 a tonne, and rennet casein added 4.6 per cent to US$11,155 a tonne. Whole milk powder rose 2.4 per cent to US$3,658, while cheddar gained 2.4 per cent, rising to US$4,381 a tonne.