Severe drought conditions in the United States played a part in today's big lift in dairy prices, ANZ National rural economist Con Williams said.
Prices of dairy products posted their third-biggest gain in about two years in the latest GlobalDairyTrade, the GDT-TWI Price Index rising 7.8 per cent compared to the last sale a fortnight ago.
According to Businesss Desk, today's gain has only been exceeded by the June 5 result, when prices jumped 13.6 per cent, and a September 1, 2010, gain of 17 per cent.
The average winning price at this morning's auction was US$3,054 a tonne.
Whole milk powder rose 7 per cent and skim milk powder gained 7.3 per cent.